- Magellan Aerospace (TSX:MAL) and Aequs have signed a memorandum of understanding to build a jointly owned engine maintenance, repair and overhaul business in the Aequs Special Economic Zone at Belagavi in Karnataka, India
- The companies’ previous joint venture, Aerospace Processing India, is the largest aerospace surface treatment provider in the country
- Magellan is an aerospace company providing complex assemblies and systems solutions to defence agencies, space agencies, and aircraft and engine manufacturers worldwide
- Magellan Aerospace stock has added 9.36 per cent year-over-year, but has given back 45.84 per cent since 2019
Magellan Aerospace (TSX:MAL) and Aequs have signed a memorandum of understanding to build a jointly owned engine maintenance, repair and overhaul (MRO) business in the Aequs Special Economic Zone at Belagavi in Karnataka, India.
The partnership coincides with robust growth in India’s aerospace sector over the past decade driven by private sector growth, increasing air traffic and government initiatives such as Make in India and UDAN Scheme.
The companies believe this sector growth makes the engine MRO sub-sector ripe for development, with representatives hard at work evaluating the market for business, commercial and military aircraft engine servicing opportunities.
A long history of collaboration
In 2008, Aequs and Magellan established the Aerospace Processing India joint venture, the first Airbus and Boeing-approved plant in the country, providing original equipment manufacturers with aerospace surface treatments not readily available at the time. Over the past 15 years, the venture has grown to be the largest of its kind in India, processing more than 1.5 million parts per year.
Leadership insights
“We have had a successful relationship with Magellan Aerospace for the past 15 years and partnered to build the most innovative and effective aerospace ecosystem in India today,” Aravind Melligeri, Aequs’ chairman and chief executive officer, said in a statement. “It is only logical we explore further opportunities to service the fast-growing business, civil and military aviation industry in India. This facility is expected to have the ability to strip, rebuild and test engines to help alleviate existing capacity constraints. This joint venture will leverage the vertically integrated aerospace manufacturing ecosystem at Aequs, and coupled with Magellan’s global presence and expertise across product lines, will be best suited to provide engine MRO services to domestic and international business, commercial and military aircraft users.”
“With soaring aerospace and aviation growth, this potential engine MRO venture for the Indian market will focus on infrastructure development, cost advantages and strategic initiatives that are essential to realizing the sector’s potential,” added Phillip Underwood, Magellan Aerospace’s president and chief executive officer. “Magellan is committed to contributing to India’s expertise in the aircraft engine MRO sector and helping grow this industry in the country. We are ready to meet the growing needs of our MRO customers with the cost-effective and quality solutions they have come to expect.”
About Magellan Aerospace
Magellan is an aerospace company providing complex assemblies and systems solutions to defence agencies, space agencies, and aircraft and engine manufacturers worldwide.
Magellan Aerospace stock (TSX:MAL) is up by 2.94 per cent, trading at C$9.11 per share as of 11:33 am ET. The stock has added 9.36 per cent year-over-year, but has given back 45.84 per cent since 2019.
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(Top photo of Magellan Aerospace workers in one of the company’s United Kingdom-based facilities: Magellan Aerospace)