SINGAPORE—Owing to poor demand, Singapore Airlines Engineering Company (SIAEC) has divested all of its 39.2% stake in Asian Surface Technologies (AST), a company that repairs and overhauls Pratt & Whitney PW4000 series engine fan blades.

SIAEC said in a stock announcement that the 39.2% was sold to PAS Technologies, which already holds a 40.8% share. The deal was worth $2.79 million in cash and was based on “a willing-buyer, willing-seller basis,” SIAEC said. An audit shows the value of the shares was worth S$3.81 million ($2.8 million) as of Dec. 31, 2020, and SIAEC will recognize an estimated gain of S$2.68 million on the divestment.

StandardAero, which acquired PAS Technologies in 2017, has now acquired a 100% ownership stake in AST. It says full ownership of AST will enable it to grow its Asia-Pacific footprint.

“We are excited by the prospect of broadening and deepening our in-region repair capabilities,” says Rick Stine, president of StandardAero’s components, helicopters and accessories division. “Having a well-established facility in a world-class aerospace hub such as Singapore will enable StandardAero to provide a much wider range of world class products and services to our customers in Asia.”

AST was initially established as a joint venture between SIAEC, PAS and the remaining 20% with United Technologies International Corporation.

“SIAEC has been reviewing its portfolio of joint ventures for consolidation, and to focus on building next-generation aircraft capabilities,” the company said in the announcement. “The divestment decision was made in light of the declining work volume at AST.” 

On top of PW4000 engine fan blade services, AST also provides plasma-coating services for aerospace as well as oil and gas products worldwide.