SIA Engineering Company (SIAEC) S59 will be forming a line maintenance joint venture (JV) in Cambodia with Cambodia Airport Investment Co. Both airports signed a joint venture agreement (JVA) on May 30, under which SIAEC will hold a 51% stake in the JV. Cambodia Airport will hold the remaining 49%.
The JV will establish line maintenance services at Cambodia’s new international airport in Phnom Penh named Techo International Airport, a greenfield airport that is being developed at the southern part of Cambodia’s capital, some 19km away from its city centre. The total investment budget for the airport is US$1.5 billion ($2.03 billion).
Techo International Airport will be developed in three phases and is designed for 50 million passengers with three runways and a satellite terminal across a total land area of 2,600 hectares. In line with its opening, the JV will begin operations in March 2025.
The JV is said to complement SIAEC’s existing network of line maintenance international stations. It is also expected to develop into a regional aircraft maintenance, repair, and overhaul hub in Techo International Airport.
“This joint venture, in partnership with Cambodia Airport, will provide comprehensive line maintenance support with a high level of despatch reliability and quality engineering services to the airlines operating in Techo International Airport. It will strengthen SIAEC’s position as a leading line maintenance provider while offering high quality and efficient maintenance services to valued customers at more overseas locations,” says Ng Chin Hwee, CEO of SIAEC.
“We are delighted to form this partnership with SIAEC. We strongly believe that the transfer of technical competencies and aligned work practices with SIAEC are crucial for the long-term success of this joint venture, which will in turn create more high-value job opportunities for our local workforce. We are undoubtedly excited about the prospects and very confident that this strategic partnership will exceed all expectations,” says Oknha Dr Pung Kheav Se, chairman of Cambodia Airport.
See also: SIA to adjust conversion prices of 1.625% convertible bonds due 2025 after interim dividend
Shares in SIAEC closed flat at $2.42 on May 29.
