Evergreen Aviation Technologies Corp (長榮航太科技) yesterday announced the formation of a new joint venture specializing in the overhaul of engines for commercial airliners with GE Aviation, a US-based manufacturer and service provider for jet engines.
The GE Evergreen Engine Services (長異發動機維修) has a paid-in capital of NT$500 million (US$16.39 million) in the preliminary stage and will become GE Aviation’s only base in Asia.
“Evergreen Aviation is planning to invest at least US$100 million in the newly launched company over the next three years,” Chang Kuo-wei (張國煒), chairman of EVA Airways Corp (EVA, 長榮航空), which holds an 80 percent stake in Evergreen Aviation, told reporters after the signing ceremony with GE Aviation.
The company is to focus on maintenance service for GEnx engines, the fastest-selling engine in GE Aviation history, with more than 1,500 on order, EVA said.
GE Aviation is to provide GEnx engine training and tooling for to the newly launched company later this year, and the facility will be able to perform limited work next year with full overhaul capability expected to follow by 2019, Chang said.
Before 2019, GE Aviation is to commission Evergreen Aviation to be in charge of the company’s maintenance business for GEnx engines in Asia, which could help raise Evergreen Aviation’s sales and profitability over the next few years, Chang said.
EVA and GE Aviation launched Evergreen Aviation in 1998, with GE Aviation taking a 20 percent stake. Evergreen Aviation provides service for more than 40 airlines, with annual sales standing at NT$17.8 billion for last year.