SIA and Sagem Establishes JV for Avionics Components MRO

(Paris Air Show, June 16, 2009) -- SIA Engineering Company Limited (SIAEC) and Sagem (Safran Group) today announced they have signed an agreement to form an avionics maintenance, repair and overhaul (MRO) Joint Venture in Singapore. For this partnership, Sagem is acting through its new Safran Electronics division. Under the agreement, SIAEC will hold a 49% equity shareholding in the joint venture (JV), with the remaining 51% owned by Sagem. The Singapore-based JV will be a dedicated Centre of Excellence & OEM (Original Equipment Manufacturer) Warranty Repair Centre for avionics components in Asia. The facility will be able to provide faster and more cost-effective solutions and Avionic MRO Packages for airline customers and OEMs in the Asia-Pacific region. This is the second partnership between SIAEC and Safran; the first one was with Messier Services Asia, a Safran Group subsidiary specialising in landing systems MRO. SIAEC's Chief Executive Officer, Mr William Tan said: "Our first partnership with the Safran Group has taken off well, with Messier Services Asia's revenue increasing two and a half fold since 2000. We are delighted to partner Safran again, this time with its Sagem subsidiary. As the leading OEM for avionics components, Sagem's knowledge of the latest technology in avionics computers for new generation aircraft such as the Airbus A380, A350 and Boeing 787 will complement SIAEC's thrust to be at the leading edge of aircraft technology. "The new JV will serve to strengthen SIAEC's avionics component capability to further support the growing fleet of aircraft under our Fleet Management Programme (FMP). As an integrated MRO supplier, the availability of an avionics MRO JV at our main base will enhance the efficiencies and cost-effectiveness of the total solutions we offer to our global FMP customers," Mr Tan added. Sagem Chairman and CEO, Mr Jean-Lin Fournereaux, said: "We are very happy to partner SIAEC and to strengthen the cooperation between SIAEC and the Safran Group. This Joint Venture is a perfect example of the great interest we have to combine the know-how of an OEM and an airline-linked MRO to develop synergies. With this partnership, we will be able to offer to Asian airlines and OEMs better performance and much larger capability in avionic maintenance, repair and overhaul."

Source: Sagem Defence & Security, A Safran S.A. Company (Paris: SAF.PA)
Date: Jun 18, 2009