SR Technics Could Sell Its Malaysia Component Shop to SIAEC
Singapore-based MRO provider SIA Engineering Co. (SIAEC) signed a memorandum of understanding to acquire part or all of SR Technics Malaysia. SIAEC will start due diligence on SRT Malaysia, located on the outskirts of Kuala Lumpur, and then determine the transaction’s terms.
Neither company would provide details about this potential deal, but SIAEC said it is interested in both SR Technics Malaysia’s component MRO and component management services.
SIAEC provides a broad range of airframe, engine, component and fleet management services at its Singapore headquarters, and it also has seven joint ventures that specialize in component repair in Singapore.
SR Technics officially opened its Malaysian component repair shop in 2014 to quicken turnaround times for customers in the region and support its integrated component service, a program under which it manages components by flight hours. It focuses on Airbus A320, A330, A340 and Boeing 737NG components.
The potential sale of SR Technics Malaysia aligns with a strategic realignment plan SR Technics announced In July 2020, following a steep decline in business in April due to the COVID-19 crisis. At that time, it said it would reposition itself to focus on engine and line maintenance, with plans to exit design engineering. It also said it wanted to reduce its flight-hour based component services business and instead focus on transactional component business.
Since then, SR Technics sold its five line stations in the UK to Storm Aviation in December 2020.
It also sold its design engineering unit to groWING.aero in September 2020 as well as its Armac Systems software division via a management buyout.
SR Technics has been owned by HNA Aviation (80%) and Mubadala (20%) since 2016.