CAL, NORDAM form joint venture for aircraft maintenance in Taiwan

Representatives from China Airlines, one of Taiwan's leading carriers, and U.S.-based NORDAM Aerospace Group, announce the establishment of a joint venture to repair and overhaul structural aircraft components for the CAL fleet and for other airlines in the Asia-Pacific region, during a press event on Nov. 14, 2017. (CNA)

TAIPEI (CNA) – China Airlines (CAL), one of Taiwan’s leading carriers, on Tuesday announced the establishment of a joint venture with U.S.-based NORDAM Aerospace Group to repair and overhaul structural aircraft components for the CAL fleet and for other airlines in the Asia-Pacific region.

The joint venture, to be called NORDAM Asia Limited, is expected to stimulate industry investment, cultivate aerospace maintenance expertise and create new jobs in Taiwan, according to CAL.

CAL Chairman Ho Nuan-hsuan (何煖軒), who will chair the new company, said he hopes the joint venture will kick-start the aerospace industry in Taiwan.

Apart from the expected boost to the components and parts industry, related manufacturing industries should be energized by the joint venture, which would lead to new market opportunities and closer links between the domestic and overseas aerospace industries, he said.

NORDAM Vice-Chairman and Chief Operating Officer T. Hastings Siegfried, who will serve as vice chairman of the new company, said the partnership will not only allow NORDAM to support aerospace maintenance capability but also expand its share of the maintenance market.

He said CAL’s network will help reduce NORDAM’s overall procurement costs, improve its cost-effectiveness, and create a win-win situation for both companies.

“Working together with China Airlines, we are improving access for all airlines in the Asia-Pacific region to choose our unparalleled expertise as a more cost-effective option,” Siegfried said.

NORDAM’s engine-type maintenance, repair and overhaul capabilities will also be expanded by working on newer aircraft models such as the Airbus A350 WXB and Boeing 777-300ER , which are flown by CAL, he said. Furthermore, the partnership will open new opportunities to sell NORDAM-manufactured products such as transparencies and interior panels to Asia-Pacific operators, Siegfried said.

NORDAM holds a 51 percent share, and CAL 49 percent, in the joint venture.

The maintenance facility will be built at at Taiwan Taoyuan International Airport and is expected to be completed and commissioned by mid-2019, according to CAL.

By Lee Hsin-Yin