SINGAPORE (June 20): SIA Engineering Company (SIAEC) and GE Aviation announced Tuesday that they are establishing a new engine overhaul joint venture based in Singapore.

The joint venture will provide a full range of engine maintenance, repair and overhaul (MRO) services for the GE90 and GE9X engines, which power the Boeing 777-300ER, 777-200LR, and 777X aircraft.

GE will have a 51% equity stake in the JV, while SIAEC will hold the remaining 49%.

In a joint statement, SIAEC and GE say the joint venture will also present opportunities for Singapore, in terms of job creation, training and additional service offerings at the Singapore hub.

This partnership come after Singapore Airlines (SIA) in February announced 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.

Subject to the finalisation of definitive agreements and necessary regulatory approvals, the joint venture is expected to handle SIA Group as well as third party MRO work.

The joint venture will establish a state-of-the-art facility in Singapore, adopting GE's "Brilliant Factory" concepts, combining advanced technologies and lean practices with digitisation and data analytics to enhance productivity.

“This partnership with GE, which is a significant strategic move for SIAEC, adds to our growing portfolio of joint ventures with the world’s leading aircraft and engine manufacturers,” says Png Kim Chiang, CEO of SIAEC.

“SIAEC is known for high-quality engine services and support, and this partnership is a natural fit for GE Aviation and SIAEC,” says David Joyce, president and CEO of GE Aviation.

“The new Singapore MRO joint venture will ensure GE90 and GE9X operators have access to the best service and support for their engines and will further strengthen GE Aviation’s presence in Singapore,” he adds.

Shares of SIAEC closed 1 Singaporean cent higher at US$4.21 on Tuesday.