SIA Engineering Company Limited (SIAEC) and Cambodia Airport Investment Co., Ltd (CAIC) announced that they have signed joint venture agreement to form a line maintenance joint venture in Cambodia. Under the agreement, SIAEC will hold a 51% equity stake in the joint venture, with CAIC holding 49%.
The joint venture will establish line maintenance services at the new international airport in Phnom Penh named Techo International Airport (TIA). TIA (Phase 1) is a greenfield airport being developed in southern Phnom Penh about 19 kilometres from Phnom Penh City Centre, with a total investment budget of US$1.5 billion. TIA, to be developed in three phases, 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 the opening of TIA, the joint venture will commence operations in March 2025.
This joint venture will complement SIAEC’s existing network of Line Maintenance International (LMI) stations. With SIAEC’s engineering capabilities and operations know-how from its LMI network, the joint venture is expected to develop into a regional aircraft maintenance, repair, and overhaul hub in TIA.
Ng Chin Hwee, Chief Executive Officer of SIAEC, said: “This joint venture, in partnership with CAIC, will provide comprehensive line maintenance support with a high level of despatch reliability and quality engineering services to the airlines operating in TIA. 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.”
Pung Kheav Se, Chairman of CAIC, said: “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.”
The joint venture is not expected to have a material impact on the net tangible assets per
share or the earnings per share of the SIAEC Group for the financial year ending 31 March 2024. None of the Directors and controlling shareholders of SIAEC has any interest, direct or indirect, in the joint venture, other than through their shareholdings (if any) in SIAEC.