Korea Aerospace Industries (KAI), South Korea`s sole aircraft manufacturer, said it has been pledged of investment from three companies in its maintenance, repair and overhaul (MRO) facility in South Gyeongsang province.
According to the aviation industry on Monday, a U.S. related company pledged investment if KAI can pull in government funding for the project. A local airliner and aircraft equipment maker also offered equity investment.
KAI is envisioning an MRO facility in Sacheon in southern region over 310 square-meter lot at a cost of 700 billion won ($ 582 million). KAI wishes it can pull 30 percent from the government and public sector and 20 percent from the private sector while it shoulders the remaining half of the funding.
Although commanding the world’s 6th largest air transport market, South Korea lacks repair infrastructure and spends 760 billion won a year to get repair work done in China, Singapore, and elsewhere.
The Ministry of Land, Infrastructure and Transport will conduct feasibility study and decide within the month whether to invest in the business.
By Kim Jung-hwan
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