In brief
SIA Engineering Company Limited says it has signed a legally non-binding framework agreement with Xiamen Iport Group to explore an investment in Arport Aircraft Maintenance & Engineering (Fujian), which provides line maintenance and ground services at four airports in Fujian, China. The parties intend to develop Arport AME’s existing maintenance business to include base maintenance and additional services, drawing on SIAEC’s maintenance capabilities and IPORT Group’s local infrastructure. They plan to work toward definitive agreements, subject to regulatory requirements and approvals. SIAEC cautions that no binding or definitive agreement has been reached, and there is no certainty that the proposed collaboration will proceed. The company says it will provide updates if material developments occur, including any signing of definitive agreements.
Key takeaways
- SIAEC and Xiamen Iport Group signed a non-binding framework agreement to explore an investment in Arport AME.
- Arport AME currently provides line maintenance and ground services at four Fujian airports.
- The parties aim to expand Arport AME’s services to include base maintenance and other offerings.
- No definitive or binding agreements have been reached, and regulatory requirements and approvals remain relevant.
SINGAPORE, November 13, 2024 -- Mainboard-listed SIA Engineering Company Limited (“SIAEC” or the “Company”) and Xiamen Iport Group (“IPORT Group”) have signed a legally non-binding Framework Agreement for SIAEC to explore investing in Arport Aircraft Maintenance & Engineering (Fujian) (“Arport AME”), a subsidiary of IPORT Group providing line maintenance and ground services in airports in Fujian, China.
This follows the announcement of the signing of the Memorandum of Understanding between the two companies on 4 September 2023 to explore MRO opportunities in Fujian, China. Since then, both parties have engaged in discussions to establish the collaboration structure and identify areas of collaboration, leading to the development of a Framework Agreement. Following this Framework Agreement, both parties will progress towards the finalisation and signing of definitive agreements, subject to meeting regulatory requirements and obtaining necessary approvals.
IPORT Group owns and operates airports in Xiamen, Fuzhou, Wuyishan and Longyan, with Arport AME performing line maintenance and ground services at these four airports. Leveraging SIAEC's comprehensive MRO service offerings, certifications and maintenance capabilities and IPORT Group’s extensive infrastructure and resources in Fujian, both parties intend to grow Arport AME’s existing MRO business to include base maintenance and other services.
As at the date of this Announcement, no definitive or binding agreements have been entered into or reached by SIAEC in respect of the matters contemplated by the Framework Agreement, and there is no assurance or certainty that such agreements will be entered into or reached or that such matters will be proceeded with.
The Company will make the necessary announcement(s) in relation to the potential collaboration as and when there are any material developments on the matter, including the signing of any definitive agreements.
None of the Directors and controlling shareholders of SIAEC has any interest, direct or indirect, in the Framework Agreement, other than through their shareholdings (if any) in SIAEC.
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About SIA Engineering Company
(Company Registration No. 198201025C)
www.siaec.com.sg
SIA Engineering Company (SIAEC) is a major provider of aircraft maintenance, repair and overhaul (MRO) services in Asia-Pacific. SIAEC has a client base of more than 80 international carriers and aerospace equipment manufacturers. It provides line maintenance services at over 30 airports in 8 countries, as well as airframe, engine and component services on some of the most advanced and widely used commercial aircraft in the world.
The 24 subsidiaries and joint ventures with original equipment manufacturers and strategic partners in Singapore, Hong Kong, Indonesia, Japan, Malaysia, Philippines, the United States of America and Vietnam increase the depth and breadth of the Company’s service offerings. SIAEC has approvals from 29 national aviation regulatory authorities to provide MRO services for aircraft registered in the United States of America, Europe, China and other countries.
About Xiamen Iport Group Co., Ltd
Xiamen Iport Group Co., Ltd, a modern state-owned enterprise, ranks among China’s top 500 multinational enterprise groups. It is engaged in the business of services and investment holding of trans-national and diversified businesses, primarily in four sectors: aviation management, logistics and supply chain business, tourist hotels and the development and management of ports in economic zones.
For more information, please contact:
Tan May Lyn
Manager Corporate
SIA Engineering Company Limited
Tel: (65) 6548 1157
E-mail: [email protected]
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Questions around this news
What does the framework agreement between SIA Engineering Company and Xiamen Iport Group cover?
The agreement sets out a basis for the two parties to explore an investment by SIA Engineering Company in Arport Aircraft Maintenance & Engineering (Fujian), an IPORT Group subsidiary. It is legally non-binding. The parties said they would work toward definitive agreements, subject to regulatory requirements and approvals; no definitive or binding agreement had been reached when the announcement was made.
What services does Arport AME currently provide?
Arport AME provides line maintenance and ground services at airports owned and operated by IPORT Group in Xiamen, Fuzhou, Wuyishan and Longyan. The release describes those services as the company’s existing business in Fujian, China, and says the parties are considering ways to develop that business further.
What expansion are the parties considering for Arport AME?
The parties intend to draw on SIA Engineering Company’s maintenance capabilities and IPORT Group’s infrastructure and resources in Fujian to expand Arport AME’s existing maintenance, repair and overhaul business. The areas they named for potential growth include base maintenance and other services. Any expansion remains subject to definitive agreements, regulatory requirements and necessary approvals.
What does aircraft MRO mean?
MRO stands for maintenance, repair and overhaul. In aviation, it refers to work that keeps aircraft, engines and components serviceable, restores them after wear or damage, and checks that they meet applicable requirements. The work can range from routine servicing to extensive inspections and repairs, depending on the aircraft or component and the maintenance facility’s capabilities.
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