SIA Engineering Company Limited (S59) and Safran Aircraft Engines have signed a joint-venture agreement to establish a full-service maintenance, repair and overhaul facility for CFM LEAP-1A and LEAP-1B engines in Singapore.

The new company will absorb SIA Engineering’s existing quick-turn LEAP work and expand it into a full shop-visit operation, enlarging capacity to meet rising global demand for LEAP support.

Safran Aircraft Engines will own 51% of the venture and SIA Engineering 49%. Initial issued capital is set at USD 100, with further capital contributions of up to USD 118 million (USD 60.2 million from Safran and up to USD 57.8 million from SIA Engineering, including in-kind assets valued at USD 13.7 million).

Assuming SIA Engineering’s full contribution had been made on Mar, 31 2026, the group estimates its earnings per share would have risen about 6.5% to 16.08 Singapore cents, while net asset value per share would have increased about 0.6% to 157.9 Singapore cents.

Completion of the transaction is subject to customary regulatory approvals. The company said no director or controlling shareholder of SIA Engineering has any interest in the deal beyond their shareholdings in the company.