Spirit AeroSystems Signs Joint Venture Agreement with Evergreen Aviation Technology Corporation to serve Asia-Pacific Aftermarket Customers
Spirit AeroSystems (NYSE: SPR) announced a joint venture with Evergreen Aviation Technologies Corporation (EGAT) to enhance its aftermarket services in the Asia-Pacific region. This partnership aims to meet the increasing demand for maintenance, repair, and overhaul (MRO) services, and is expected to complement Spirit's recent acquisitions of Applied Aerodynamics and Bombardier assets. The new joint venture, Spirit Evergreen Aftermarket Solutions (SEAS), will leverage EGAT's local expertise to provide efficient repairs for fleet operators. The agreement is subject to foreign investment approval.
- Formation of Spirit Evergreen Aftermarket Solutions (SEAS) to enhance service capabilities.
- Expansion of MRO services in the growing Asia-Pacific market.
- Strategic partnership with EGAT expected to improve repair efficiency.
- None.
WICHITA, Kan., April 27, 2021 /PRNewswire/ -- Spirit AeroSystems (NYSE: SPR) announced today a planned expansion of its aftermarket presence in the Asia-Pacific region by signing a joint venture agreement with Evergreen Aviation Technologies Corporation (EGAT). The new agreement is expected to complement Spirit's recent acquisition of Applied Aerodynamics and last year's acquisition of select Bombardier assets, and further strengthen its global maintenance, repair and overhaul (MRO) capabilities. Under the joint venture agreement, Spirit and EGAT will form a new company, Spirit Evergreen Aftermarket Solutions (SEAS), and will transfer repair capabilities to SEAS, increasing manufacturing expertise and services to meet growing fleet demands in the region.
"Spirit AeroSystems is strategically expanding our capabilities in the Asia-Pacific region because the local fleet operators need affordable, efficient repairs, and we're in a position to deliver on that need with our expertise and quality MRO services," said Jim Lickteig, Senior Director of Aftermarket Solutions at Spirit AeroSystems. "By embarking on these new relationships, we will be better prepared to help passenger and freight carriers in the region remain competitive as the industry continues to recover from the pandemic."
Previously, Spirit entered into a multi-year agreement with EGAT in September 2020 in which Spirit provided maintenance services in the Taiwan facility on products the aerostructures company manufactures, including the 777 GE90/Trent800 nacelle, 737 CFM56-7B thrust reverser, and flight control surfaces along with broader nacelle MRO services on the CF6 powered aircraft and A320. By enhancing this existing commercial agreement with a joint venture agreement, Spirit and EGAT will continue working to expand capabilities to better service customers in the region.
"EGAT is excited to enter into the business venture with Spirit to collectively deliver optimal business propositions to fleet operators and partners in the region. EGAT's corporate values of transparency, honesty and integrity infuses well with Spirits' transparency, collaboration and inspiration," said Kin Chong, executive vice president of Business Coordination Division at EGAT. "Carriers in the region can expect more responsive service solutions."
In addition to Taiwan, Spirit also operates MRO locations in Wichita, Kan., Dallas, Tex., Western Europe, North Africa, and East Asia. To learn more about Spirit's global MRO solutions and recent growth, visit our website.
While the joint venture agreement has been signed, forming the joint venture is subject to the satisfaction of certain conditions precedent including foreign investment approval.
About Spirit AeroSystems
Spirit AeroSystems is one of the world's largest manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. With expertise in aluminum and advanced composite manufacturing solutions, the company's core products include fuselages, integrated wings and wing components, pylons, and nacelles. Also, Spirit serves the aftermarket for commercial and business/regional jets. Headquartered in Wichita, Kansas, Spirit has facilities in the U.S., U.K., France, Malaysia and Morocco. More information is available at www.spiritaero.com.
About EGAT
Evergreen Aviation Technologies Corp. or EGAT is a multiple award-winning, mid-sized boutique aircraft Maintenance Repair and Overhaul facility based in Taiwan, most recently ranked 2019 Top-10 Global Airframe MRO by Aviation Week. Part of the Evergreen Group, characterized by its iconic eco-friendly container shipping service and EVA air, a notable SKYTRAX 5-star service airline in the Star Alliance, EGAT delivers an extensive menu of airframe. Modification, engine, and component services to a host of airline partners from around the world. For more information, please visit www.egat.com.tw.
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This press release contains "forward-looking statements" that may involve many risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "aim," "anticipate," "believe," "could," "continue," "estimate," "expect," "goal," "forecast," "intend," "may," "might," "objective," "outlook," "plan," "predict," "project," "should," "target," "will," "would," and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook include, without limitation, the impact of the COVID-19 pandemic on our business and operations; the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft; our reliance on Boeing for a significant portion of our revenues; our ability to execute our growth strategy, including our ability to complete and integrate acquisitions; our ability to accurately estimate and manage performance, cost, and revenue under our contracts; demand for our products and services and the effect of economic or geopolitical conditions in the industries and markets in which we operate in the U.S. and globally; our ability to manage our liquidity, borrow additional funds or refinance debt; and other factors disclosed in our filings with the Securities and Exchange Commission. These factors are not exhaustive and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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SOURCE Spirit AeroSystems
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