STA Engines, a subsidiary of Singapore-based MRO ST Aerospace, is to inject a further $20.8m into its joint venture with Xiamen Aviation Industry.
The JV, known as STATCO (ST Aerospace Technologies (Xiamen) Company), was launched in October 2011 and offers MRO services on CFM56-7B engines from facilities at Gaoqi International Airport.
STA Engines, which owns 80 per cent of STATCO, has confirmed that a total of $26m will be invested in the firm once approval has been received from the Chinese authorities.
The MRO has not confirmed how the additional funds will be used. If approved, the cash injection will see STA Engines’ total capital contribution in STATCO reach $41.6m.