SINGAPORE—ST Engineering will divest its 49% stake in Shanghai Technologies Aerospace Company (STARCO), ending a 21-year MRO partnership with China Eastern Airlines.
The company announced the move on Nov. 17, saying both parties agreed to conclude the venture “to focus on their own growth plans.”
STARCO was established in 2004 under a 20-year term with operations at Shanghai Pudong and Hongqiao airports. The agreement was extended in 2024.
China Eastern will purchase ST Engineering’s 49% share for CNY680.5 million ($94 million), paid in two tranches—CNY506.7 million at completion and the remaining CNY173.8 million by Dec. 31, 2026.
ST Engineering said the divestment will not affect its overall MRO capability.
“Even after factoring in the rationalization of STARCO and taking into account the ongoing airframe MRO capacity expansion projects in Singapore, China and the U.S., the group’s total capacity remains higher than pre-COVID levels, ensuring continued ability to meet customer MRO demand,” it said.
The Singapore-headquartered company continues to maintain a presence in China, with facilities in Guangzhou, Xiamen and Ezhou.
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