SIA Engineering (SIAEC) has signed a non-binding Memorandum of Understanding (MOU) with Impeccable Vintage Properties (IVP) – a wholly-owned subsidiary of Malaysia’s sovereign wealth fund Khazanah – to potentially lease two hangars.
The hangars will be located at Complex A at the Sultan Abdul Aziz Shah Airport in Selangor.
The parties are set to work on the next phase of hangar technical assessment to ensure that the refurbished hangars will be able to support the maintenance, repair and overhaul (MRO) of both current and next generation aircraft.
“These hangars will strengthen our network of base maintenance facilities in the region, enabling us to cater to the varying needs and capabilities required by our customers,” SIAEC CEO Ng Chin Hwee said in an Apr 5 bourse filing.
The latest move comes soon after SIAEC’s announcement of its plans to acquire SR Technics and POS Aviation Engineering Services in Malaysia.
“Our growth in Malaysia will complement the capabilities of our Singapore hub,” added Ng.
See also: SATS launches US$500 mil bonds under multicurrency debt issuance programme
None of the directors and controlling shareholders of SIAEC has any interest – direct or indirect – in the transaction, other than through their shareholdings, if any, in the company.
Given the company’s track record in MRO, IVP general manager Fuad Sharuji notes that “SIAEC’s potential establishment in Subang, Malaysia is well-positioned to further bolster the thriving aerospace industry in support of the Government of Malaysia’s operations”.
“The potential lease by SIAEC will be a significant milestone in the growth and progress of the MRO sector in Malaysia, and will serve as an avenue which would benefit the local MRO industry,” he added.
See also: SIA posts passenger traffic growth of 15.8% in December operational update
Agreeing, Arham Abdul Rahman, CEO of the Malaysian Investment Authority said that the MOU would boost the growth of Malaysia’s cost competitive aerospace ecosystem.
This segment “has been identified as a new economic growth area within our National Investment Aspirations which focuses on high-impact and technological investments," he explained.
Shares in SIAEC closed up 6 cents or 2.3% at $2.68 on Apr 5, before the announcement.
Cover image: SIAEC
