Topcast Aviation Supplies (TOPCAST), a provider of aircraft parts distribution and MRO services, announced that it has completed the acquisition of AML Aviation Technologies (AML), a Civil Aviation Administration of China (CAAC) approved aircraft components maintenance company located in Shanghai. AML was established by Aviation Industry Corporation of China in 2002. With diverse testing facilities and repair capabilities, the core services include testing, repair, modification and overhaul of air conditioning, communication, battery, cabin, fuel, hydraulic & pneumatic, light, water and waste handling systems. TOPCAST onshore MRO service centre in Shanghai can provide a lower cost, faster turnaround time and more environmentally friendly service to minimise carbon footprint through reduced cross-border logistics.
“We’re very pleased to welcome AML to TOPCAST,” said Steven Pearson, chief executive officer of TOPCAST. “This acquisition reveals and positions TOPCAST business well for the future of aviation dynamics in mainland China. We expect our MRO services to increase further its level of efficiency, through economies of scale, improved business operations and lower costs. We look forward to making an active contribution to the current strong demand of cargo freight for medical supplies and preparing industry recovery.”
George Poh, vice president, Sales and Customer Services & Support of TOPCAST, said “Asia-Pacific is the fast-growing region of its MRO market and expecting to register a CAGR of over 5 percent. China is now the second-largest aviation market and has the highest revenue share in the MRO market. We foresee there’s a surge of commercial aircraft MRO activities in China regarding to the fleet expansion plan of both traditional and low-cost carrier.”
“In longer-term, TOPCAST will set up a warehouse in Shanghai to complement for smooth operations and will implement a dedicated pooling program for lower life cycle costs from the initial core units from each airline customer.” Steve Chua, managing director, Global MRO of TOPCAST added.
Shanghai is the hub city for seven commercial airlines and six cargo carriers , accounting for 2,165 aircraft, 59 percent of the national market size. This merger and acquisition will further underpin TOPCAST leading status of MRO service provider in the region.