ST Aero forms MRO JV in Guangzhou

ST Aerospace announced that it has concluded joint venture (JV) discussions with Guangdong Airport Management Corporation (GAMC) to set up a commercial aircraft heavy maintenance facility in Guangzhou, China. The JV company, ST Aerospace

(Guangzhou) Aviation Services Company Ltd, will have a total investment of US$99 million.

ST Aerospace will own a 49 per cent stake of the JV company, while GAMC will own 51 per cent of the company. The facility is expected to begin operations in roughly two years time, subject to government approval.

Located within the Guangzhou Baiyun International Airport, the facility will occupy an initial area of 147,000 square metres, which will be adequate for two hangars, each able to accommodate two wide-body aircraft. The facility will provide maintenance and modification services for Boeing and Airbus aircraft, and it expects to employ an initial work force of about 500-600. The facility will be ST Aero's fourth in China after establishing JV companies in Shanghai, Xiamen and an earlier one also in Guangzhou.