SIA Engineering completes union of Rolls-Royce JVs

The surviving entity would be Singapore Aero Engine Services.

The MRO arm of Singapore’s flag carrier has finished the amalgamation of the JVs it has with Rolls-Royce Singapore.

According to a report by OCBC, the JVs will be fusing Singapore Aero Engine Services Pte Ltd (SAESL) and International Engine Component Overhaul Pte Ltd (IECO), with the former being the surviving entity.

“Recall that SIAEC had just earlier this year, completed the divestment of its 10% stake in Hong Kong Aero Engine Services Ltd (HAESL), which is a JV between Hong Kong Aircraft Engineering Company Ltd (HAECO) and RRS,” the report noted.

Meanwhile, OCBC added that as IECO also overhauls and repairs aero engine components, SIAEC said that the amalgamated company will be able to generate greater operational efficiencies, enjoy better economies of scale and result in potential cost savings through streamlining of business processes.