SIA Engineering Acquires Stake in Arport AME to Expand MRO in China

This article is based on an official press release from SIA Engineering Company (SIAEC).

SIA Engineering Company Limited (SIAEC) has successfully secured a 30% stake in Arport Aircraft Maintenance & Engineering (Fujian) Co., Ltd. (Arport AME). According to a company press release dated March 10, 2026, the Singapore-based maintenance, repair, and overhaul (MRO) provider acquired the stake for RMB 129 million (approximately $18.8 million to $23.86 million USD) via a public tender.

This acquisition sets the stage for a strategic joint venture with China’s Xiamen Iport Group (IPORT Group). The partnership aims to significantly expand SIAEC’s operational footprint across the Asia-Pacific region, specifically targeting four key airports within China’s Fujian province.

SIAEC Global Private Limited, a wholly-owned subsidiary of SIAEC, will now proceed to enter into definitive agreements with the direct shareholders of Arport AME to formally establish the joint venture, as outlined in the official announcement.

Transaction Details and Strategic Objectives

Expanding the MRO Footprint in Fujian

The RMB 129 million transaction was administered by the Xiamen Equity Exchange Centre. By acquiring a 30% share of Arport AME’s enlarged capital, SIAEC positions itself to offer comprehensive line maintenance and ground services across multiple regional hubs. According to the press release, these services will be deployed at airports in Xiamen, Fuzhou, Wuyishan, and Longyan.

Additionally, the joint venture will conduct base maintenance services at the existing Xiamen Gaoqi International Airport. IPORT Group, a state-owned enterprise that ranks among China’s top 500 multinational enterprise groups, currently owns and operates these regional airports, providing a robust infrastructure for the new MRO operations.

Transitioning to Xiamen Xiang’an International Airport

A critical component of this joint venture is future-proofing the MRO operations. The official release notes that the transaction factors in Arport AME’s strategic plans to transition its operations to the new Xiamen Xiang’an International Airport. This new aviation hub is scheduled to open in late 2026, eventually replacing the existing Gaoqi Airport and offering modernized facilities for the joint venture’s base maintenance services.

A Multi-Year Partnership Culminates

From MOU to Joint Venture

The successful tender marks the culmination of a multi-year strategic alignment between SIAEC and IPORT Group. The two entities initially signed a legally non-binding Memorandum of Understanding (MOU) on September 4, 2023, to explore MRO opportunities in the Fujian region.

This relationship progressed on November 12, 2024, when the partners signed a non-binding Framework Agreement. That agreement outlined SIAEC’s formal intent to explore an investment in Arport AME and expand its service offerings to include base maintenance. The March 10, 2026, tender victory finalizes this investment phase.

Regarding the financial impact, SIAEC stated in its release that the transaction is not expected to have a material impact on the net tangible assets per share or the earnings per share of the SIAEC Group for the financial year ending March 31, 2026. The company also confirmed that no directors or controlling shareholders have any direct or indirect interest in the transaction outside of their existing SIAEC shareholdings.

Broader Industry Context

AirPro News analysis

We view this acquisition as a calculated, long-term play by SIAEC to capture a larger share of the growing Chinese domestic aviation market. By aligning with a major state-owned enterprise like IPORT Group and preparing for the transition to the upcoming Xiamen Xiang’an International Airport, SIAEC is embedding itself deeply into China’s future aviation infrastructure.

This move in Fujian complements SIAEC’s broader, aggressive regional expansion strategy across the Asian continent. For context, in May 2024, SIAEC was appointed by Air India as a strategic partner to develop base maintenance facilities in Bengaluru, India, a project also projected to be ready in 2026. Together, these initiatives demonstrate an ambition to dominate the MRO landscape far beyond Southeast Asia.

Furthermore, the MRO sector is currently experiencing unique market dynamics. As noted in recent industry reports and SIAEC’s own operational updates, there is strong profitability and demand driven by airlines keeping older aircraft in service due to global aircraft delivery delays. Summarizing the current market environment, company updates have highlighted:

“Stable growth” in MRO demand, though the industry continues to face supply chain constraints, which have led to longer lead times for aircraft spares and extended aircraft maintenance durations.

By establishing localized joint ventures and expanding its base maintenance capabilities in key markets like China and India, SIAEC is likely attempting to mitigate some of these supply chain headwinds while capitalizing on the sustained demand for legacy aircraft maintenance.

Frequently Asked Questions (FAQ)

What is the value of the SIAEC stake in Arport AME?

SIAEC acquired a 30% stake in Arport AME for a purchase consideration of RMB 129 million, which is approximately $18.8 million to $23.86 million USD depending on exchange rates.

Which airports will the new joint venture serve?

The joint venture will provide line maintenance and ground services at airports in Xiamen, Fuzhou, Wuyishan, and Longyan. Base maintenance will initially be conducted at Xiamen Gaoqi International Airport.

When will the new Xiamen Xiang’an International Airport open?

The new Xiamen Xiang’an International Airport is scheduled to open in late 2026, at which point the joint venture plans to transition its base maintenance operations to the new facility.

Sources

SIA Engineering Company (SIAEC) Press Release