Birmingham, UK â€š-Â Dunlop Aircraft Tyres Ltd has signed a Memorandum of Understanding with Hong Kong Aircraft Engineering Company Limited (HAECO) and Taikoo (Xiamen) Aircraft Engineering Company Limited (TAECO) to establish a tyre retreading facility in Jinjiang, Fujian Province, China. DATL said it expects to form a joint venture between the three companies, with Dunlop Aircraft Tyres as the majority partner. The retread facility is due to be operational in early 2009.
Dunlop Aircraft Tyres currently has an integrated new tyre manufacturing and retreading facility in Birmingham, UK. Penetration of the Asian market has been restricted to date as retreading from Europe is uneconomic for airlines located in the Asia Pacific rim region.
â€œCommercial aviation is expanding rapidly across Asia, and aircraft manufacturers have recently increased their forecast of jet airliner deliveries because of the pace of growth across the region,â€ said Dunlop Aircraft Tyres' chairman, Ian Edmondson.
â€œWe are also excited about the opportunity of working with HAECO, one of the world's leading aircraft engineering companies. The company has a strong reputation and we are delighted to be partnering with them on this initiative.â€
â€œHAECO already has a number of joint ventures in place with other leading companies in the aerospace market,â€ said P.K. Chan, deputy chairman & chief executive officer of HAECO and chairman of TAECO. â€œTyre retreading will further enhance our present comprehensive aeronautical engineering and maintenance services for our existing and future customers. Dunlop Aircraft Tyres is one of the world leaders in this field and we are pleased to have the opportunity to co-operate with them.â€
The move follows the acquisition by AAC Capital Partners, formerly the private equity business of ABN Amro, of 74.6 percent of Dunlop Aircraft Tyres' equity in May 2007.