MOTHERWELL-based MB Aerospace has secured what it describes as a “crucial geographical presence” in the rapidly-expanding Asian market with the acquisition of a Taiwanese company specialising in the repair of aero-engine compressor and turbine components.
Unveiling the deal, the Scottish company highlighted the Taiwanese government’s commitment to expanding the high-tech east Asian economy’s aerospace sector. MB Aerospace described this commitment as a “very attractive factor”.
The business being acquired, Asian Compressor Technology Services Company Limited, will trade as MB Aerospace ACTS (Taiwan) following legal completion of the deal, which is expected in January.
ACTS, based close to Taiwan Taoyuan International Airport, near Taipei, employs more than 100 specialist and technical staff.
The company was founded in 1995 as a joint venture by US aircraft engine manufacturer Pratt & Whitney, Taiwanese carrier China Airlines and Singapore Airlines Engineering Company. It was established to provide in-house repair of components within the turbine and compressor sections of gas turbine aero-engines.
MB Aerospace, which will see its overall employee numbers rise to more than 1,700 on the back of the acquisition and is majority-owned by US-based private equity group Blackstone, described ACTS as a “leading global provider” of aero-engine component repair services to Pratt & Whitney’s overhaul network. The Scottish company declared the deal would give it a “highly-performing footprint” in Asia.
Craig Gallagher, chief executive officer of MB Aerospace, said: “This acquisition greatly expands our capabilities in the repair sector and gives us a crucial geographical presence in the fast-growing Asian market.
“ACTS already serves a diverse customer base globally and its truly world-class servicing capabilities on performance-critical rotating components will now operate in synergy with our high-volume compressor and turbine component manufacturing facility at MB Aerospace Newton Abbot [in Devon].”
He declared that expanding capabilities in the turbine and compressor sections of the aero-engine was a key strategic objective for MB Aerospace.
Mr Gallagher, who led a management buy-out of the MB Aerospace business from engineering group Motherwell Bridge in 2007, highlighted “ambitious plans for further growth and investment in both Taiwan and Newton Abbot”.
He said: This is a hugely exciting and positive deal for everyone involved. Taiwan is a global centre for manufacturing innovation and the Taiwan government’s stated aim of supporting aerospace manufacturing is also a very attractive factor for us as we look to expand operations there.”
Mr Gallagher added: “ACTS provides a tremendous platform for further growth in Asia. We are buying a high-performing company. We are also joining forces with a world-class senior management team at ACTS who will help deliver our growth ambitions during an exciting time for the industry. The global aircraft fleet is projected to double in the next 20 years, and much of this demand will come from growth in Asian air traffic.”
MB Aerospace has a major presence in Europe and the US.
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