Singapore Technologies Engineering has formed a new joint venture company with SF Airlines in the Chinese city of Ezhou in Hubei province.
The new venture is a partnership between STE’s commercial aerospace business and the Chinese cargo airline owned by SF Express.
The joint venture was set up with a registered capital of around S$19m. ST Engineering has a 60% stake in the venture with the remaining 40% held by SF Airlines.
The joint venture will operate a greenfield airframe facility at the Ezhou Huahu Airport to provide airframe MRO services to cargo and passenger airlines operating in the Asia region, including SF Airlines. The first hangar facility is estimated to be ready in 2025.
Jeffrey Lam, president of commercial aerospace at ST Engineering, said, “China will be a strong growth driver for Asia’s commercial aerospace sector over the next decade.
“A presence in Hubei, China, will enhance our MRO network in Asia to better meet and capture the rising regional demand, while our strategic collaboration with an airline partner will enable us to start up a greenfield operation quickly.”
STE said the joint venture is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the company for the current financial year.