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Spirit AeroSystems (NYSE: SPR) announced the launch of Spirit Evergreen Aftermarket Solutions (SEAS), a joint venture with Evergreen Aviation Technologies Corp. (EGAT), set to begin operations on October 3 in Taiwan. This venture aims to enhance Spirit's maintenance, repair, and overhaul (MRO) services and cater to burgeoning fleet demands in the Asia-Pacific region. The venture follows a partnership initiated in April 2021 and aims to significantly grow Spirit's aftermarket revenue, targeting $500 million by 2025, up from $239.9 million in 2021.
Positive
Launch of SEAS enhances MRO capabilities in the Asia-Pacific region.
Joint venture aims to significantly increase aftermarket revenue targeting $500 million by 2025.
Aftermarket business revenues grew from $186 million in 2019 to $239.9 million in 2021.
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None.
WICHITA, Kan.--(BUSINESS WIRE)--
Spirit AeroSystems [NYSE: SPR] announced today at MRO Asia-Pacific in Singapore that Spirit Evergreen Aftermarket Solutions (SEAS), a joint venture with Evergreen Aviation Technologies Corp. (EGAT), will open for business on Oct. 3 in Taiwan.
Spirit announced the joint venture agreement with EGAT in April 2021, strengthening its global maintenance, repair and overhaul (MRO) capabilities. The agreement will bring comprehensive nacelles and flight control surfaces solutions for 777 (GE90, Trent800 & PW4000), 747-8 (GEnx-2B), 737 (CFM56-7B & LEAP 1B), 747/767 (CF6-80C2), 787 (GEnx-1B), A330 (Trent700), and A320 (V2500 & CFM56-5B).
SEAS increases Spirit’s services to meet growing fleet demands in the Asia-Pacific region.
“We are very happy to have successfully built our commercial relationship into a long lasting one as a joint-venture partner,” said Kailash Krishnaswamy, Senior Vice President of Spirit Aftermarket Services. “During the last several years, EGAT has been a trusted partner while we jointly served the Asia-Pacific market. The significant pickup in flight activity in this region provides robust tailwind for the success of our joint venture. Spirit will be bringing its efficient and low-cost MRO repair engineering, and material management capabilities to the joint venture.”
In September 2020, Spirit EGAT entered into an agreement for Spirit to provide maintenance services in Taiwan on 777 GE90/Trent800 nacelles, 737 CFM56-7B thrust reversers, and flight-control surfaces along with broader nacelle MRO services on the CF6 powered aircraft and A320.
“For EGAT in SEAS, it is a partnership of shared values towards delivering excellence in MRO services, underpinned by mutually strong business ethics,” said Kin Chong, Executive Vice President of EGAT’s Business Coordination Division. “SEAS is an extension of the exceptional heavy airframe maintenance and modification business value that EGAT provides to a host of notable airline partners globally, ranging from Dreamlifter conversions to BCF conversions, and from 787 structural mods to 747-8 stringer repairs.”
Krishnaswamy said Spirit’s Aftermarket business continues to grow since the 2021 acquisition of select Bombardier maintenance, repair and overhaul operations in Belfast, Northern Ireland, and Casablanca, Morocco; the acquisition of assets from Applied Aerodynamics in Dallas, Texas, USA, and the SEAS joint venture. Spirit’s Aftermarket business revenues grew from $186 million in 2019 to $239.9 million in 2021. Spirit is targeting to grow the Aftermarket business to $500 million in revenue by 2025.
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. We are leveraging decades of design and manufacturing expertise to be the most innovative and reliable supplier of military aerostructures, and specialty high-temperature materials, enabling warfighters to execute complex, critical missions.Spirit also 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.
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.
Spirit AeroSystems has launched Spirit Evergreen Aftermarket Solutions (SEAS) with Evergreen Aviation Technologies Corp. (EGAT), commencing operations on October 3 in Taiwan.
When did Spirit AeroSystems announce its joint venture with EGAT?
The joint venture agreement was announced in April 2021.
What financial targets does Spirit AeroSystems have for its aftermarket business?
Spirit aims to grow its aftermarket business revenue to $500 million by 2025.
How much did Spirit AeroSystems' aftermarket revenues grow from 2019 to 2021?
Aftermarket revenues grew from $186 million in 2019 to $239.9 million in 2021.
What services will SEAS provide?
SEAS will provide comprehensive nacelles and flight control surfaces solutions for various aircraft models, including the 777, 747-8, 737, 787, A330, and A320.
