New French owner details restructuring plan for unit of bankrupt Belgian flag carrier
TAT Industries plans to sink more than €30 million ($36.7 million) into revamping the operations of Sabena Technics over the next two years following its move to acquire the maintenance subsidiary of the bankrupt Belgian flag carrier.
The pending takeover will underpin the French maintenance, repair and overhaul (MRO) provider’s ambitious expansion plans by increasing turnover by more than half. TAT signed a memorandum of understanding at the
Sabena Technics will keep its name after the acquisition is completed, “probably before the autumn”, TAT Industries says. “The purchase of Sabena Technics will allow us to maintain, and even surpass the development objectives TAT Industries set itself in 1998 and which have been fulfilled until now: the doubling of turnover every five years, through internal or external growth,” it adds.
TAT Industries plans “extremely substantial” investment in Sabena Technics, totalling €31 million between 2005 and 2007. Next year it plans to replace IT systems, open a new warehouse, buy new tools for aircraft and equipment maintenance and increase of stocks of overhaulable equipment.
TAT Industries plans to create four subsidiaries under the Sabena Technics umbrella, corresponding to current areas of activity. Sabena Technics Maintenance will incorporate line maintenance, heavy and light maintenance, heat treatments, and composites. Sabena Technics Component will deal with avionics and electrical systems, Sabena Technics Landing Gear will cover landing gear, wheels, brakes, surface treatments and tooling, and Sabena Technics Rotable will manage overhaulable equipment stocks used for power by the hour contracts.
TAT Industries, which has its main sites at Dinard, Nimes and Marseille, had turnover of €184 million in 2004 and predicts around €320 million in 2006, the first full year of the newly consolidated group. Sabena Technics posted turnover of €125 million in 2004. TAT says it will “remain attentive to new acquisition opportunities”.
HELEN MASSY-BERESFORD/LONDON
Source: Flight International
