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SIA Engineering, GE Aviation form Singapore joint venture for engine overhaul
SINGAPORE-LISTED SIA Engineering Company (SIAEC) has agreed to establish a joint venture in Singapore for engine overhaul with Ohio-based GE Aviation, the two companies said in a joint statement on Tuesday evening.
GE will have a 51 per cent equity stake in the joint venture and SIAEC will hold the remaining 49 per cent.
The joint venture will provide a full range of engine maintenance, repair and overhaul (MRO) services for the GE90 and GE9X engines, the release said. The GE90 engine exclusively powers the Boeing 777-300ER and 777-200LR, and the GE9X engine is the sole engine selection for the Boeing 777X aircraft.
The joint venture will handle work from the SIA group, as well as third party MRO work. It will also create jobs, training and provide additional service offerings in Singapore.
This partnership, which is expected to yield benefits to and beyond the SIA group, is made possible by Singapore Airlines' announcement in February 2017 of a letter of intent for 39 Boeing widebody aircraft valued at US$13.8 billion, which includes 20 777-9s powered by GE9X engines. SIA is also a major operator of GE90-powered 777-300ERs.
SIAEC's share price on the mainboard rose by one Singapore cent, or 0.24 per cent, to close at S$4.210 on Tuesday before the announcement.