ST Aero forms JV for new facility in Guangzhou

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Maintenance, repair and overhaul firm ST Aerospace has formed a joint venture to set up a heavy maintenance facility at Guangzhou Baiyun International Airport.

ST Aero will own a 49% stake in the company, called ST Aerospace (Guangzhou) Aviation Services. Airport operator Guangdong Airport Management Corporation (GAMC) will hold the remaining 51%.

The new joint venture is expected to begin operations two years after incorporation. While the Civil Aviation Administration of China has endorsed the new company, the Chinese government has yet to approve it, says ST Aero.

Construction of the facility will take about two years to complete, it adds.

The 147,000 sq m facility will have two hangars, with each hangar able to accommodate two wide-body aircraft. It will offer maintenance and modification services for Boeing and Airbus aircraft, and employ a work force of up to 600 people.

"Guangzhou is a major aviation hub in Asia, and is very well connected to the rest of the region as well as other major aviation hubs in China. We hope to build a strong capability to provide high quality and reliable services for our global customers who operate in and fly into China," says ST Aero's president Chang Cheow Teck.

With the new joint venture, ST Aero will have four facilities in China.