LANGKAWI: Automotive components manufacturer and assembler Sapura Industrial Bhd has entered into a shareholders’ agreement with two Japanese aerospace companies to diversify into the manufacturing and assembling of aerospace components for the Malaysian and global markets.
Sapura Industrial together with Wada Aircraft Technology Co Ltd and Aero Inc had on March 15, 2019 incorporated Sapura Aerospace Technologies Sdn Bhd. Sapura Industrial will hold a 60% stake in the joint venture company, while Wada will hold 25% and Aero 15%.
Sapura Aerospace Technologies will build a high technical facility over a 5-acre site in the Greater Klang Valley area with an investment of up to RM100 million in the next five years for facilities and machineries.
The joint venture company will provide manufacturing and assembly services of aerospace components, sub-assemblies, tooling, jigs and fixtures, for the aerospace industry in Malaysia, Japan and globally.
Sapura Industrial is an automotive parts manufacturer for original equipment manufacturers (OEMs), specialising in precision machining, hot and cold forming and chassis and modular assembly.
Wada Aircraft is involved in the business of manufacturing aerospace components, jigs, fixtures and tooling while Aero specialises in the business of assembly and manufacturing of aerospace parts.
Sapura Aerospace Technologies will benefit from the aggregated and combined resources of the three shareholders which will bring together 110 years of manufacturing experience, a 1,500-strong team and the operations of 11 aerospace facilities.
It will synergistically and quickly deploy the expertise of these three companies in various areas of aerospace manufacturing, business management, customer reach and deliverability.
Besides this, the companies will share capabilities including manufacturing experience and facilities, technical expertise, human resource development, professional network and business support.
Sapura Aerospace Technologies will also provide better service and competitive solutions to existing and potential customers who are major players in aircraft manufacturing and provide a good platform to expand its customer base in Japan, Malaysia and globally.
The joint venture company is among the first Malaysian companies offering specialised and focused suite of services, particularly in high-value chain aircraft assembly and machining works, to Malaysian, Japanese, regional and envisioned global potential customers.
These potential customers include OEMs and tier 1 suppliers, such as Airbus and Boeing.
These specialised expert services to be offered by Sapura Aerospace Technologies include advanced machining, assembly of large key sections of aircraft, advanced manufacturing, high-level engineering and wide variety of manufactured materials.
Sapura Aerospace Technologies plans to construct a purpose-built high technically specified facility with more than 200 staff to be trained (the lead group in Japan) under specially-designed programmes and accreditation. Production is expected to ramp up in 2021.
