ST Engineering is looking to establish its presence in Asia Pacific after it announced a joint venture with Chinese cargo carrier SF Airlines. The company’s commercial aerospace business and SF Airlines have agreed to set up a commercial airframe maintenance, repair and overhaul (MRO) joint venture in China’s Hubei province.

The two plan to operate a ‘greenfield’ airframe MRO facility at the Ezhou Huahu Airport which is designated as Hubei’s international logistics hub airport. The joint venture will  see ST Engineering take a 60 percent majority stake, with the remaining 40 percent to be held by SF Airlines. 

The partnership said demand for MRO services in China and the Asia Pacific is estimated to grow at an annual rate of about 3 to 7 percent over the next decade according to industry forecasts. Already landing a deal with China’s largest cargo airline, ST Engineering is also looking to serve other Chinese carriers as China reopens and demand gathers pace.

ST Engineering currently operates airframe MRO facilities at Guangzhou Baiyun International Airport and Shanghai Pudong International Airport, as well as an engine MRO facility in Xiamen. The first facility from this new joint venture is expected to be ready in 2025.