Establishment of Karbon, an Independent Aircraft Maintenance and Teardown Joint Venture in Malaysia

Sep. 27, 2023
Marubeni Corporation

Marubeni Corporation (hereinafter, “Marubeni”) and D'viation Solutions Sdn Bhd (hereinafter, “DSSB”), a leading company in Southeast Asia (based in Malaysia) engaged in  aircraft maintenance training and aircraft light maintenance business, established a joint venture named KarbonMRO Services Sdn Bhd (hereinafter, “Karbon”), to enter the aircraft heavy maintenance*1 and teardown*2 business.

Signing Ceremony at MRO Asia-Pacific Signing Ceremony at MRO Asia-Pacific

Karbon will provide aircraft heavy maintenance as well as teardown for airframes and engines of narrow-body aircraft*3, along with heavy maintenance for business jet aircraft as an independent MRO*4 provider, by utilizing Marubeni’s know-how in the aftermarket and DSSB’s capabilities in human capital development and aircraft maintenance. With this combined expertise, Karbon will offer bespoke services throughout an aircraft’s entire lifecycle.

Image of Aircraft Hangar Image of Aircraft Hangar

The Subang Airport*5, where Karbon is based, is undergoing expansion (with projected completion by 2027) and is expected to become a future hub of the aviation industry in Southeast Asia. From this base, Karbon aims to contribute to sustainable economic growth and human capital development in the region.

The demand for both aircraft heavy maintenance and aircraft teardown services in Southeast Asia, Karbon’s target market, has been increasing since the slowdown of the COVID-19 pandemic, with the number of aircraft in operation rising as the air industry recovers. Aircraft heavy maintenance demand in  the region is expected to grow from US$380 million in 2022 to approximately US$630 million by 2032. Growth in teardown demand is also expected, as the number of retired aircraft in Southeast Asia is predicted to increase by an average of 7.5% per year.

Marubeni has been participating and actively expanding its business in the aviation aftermarket business since its entry into the sector in 2012, when the company acquired a stake in Magellan Aviation Group LLLP, a U.S. company that sells parts and leases engines to the aircraft aftermarket. Through establishing Karbon, Marubeni will strengthen and diversify its capabilities, and plans to maximize the value delivered to customers, in the Asian aircraft aftermarket.

*1: Massive overhaul and inspection of an aircraft on a regular basis (repair, refurbishment, painting, etc.)
*2: Teardown for airframes and engines.
*3: Small passenger aircraft with a single aisle.
*4: Maintenance, Repair, and Overhaul.
*5: Sultan Abdul Aziz Shah Airport, located in Selangor State near Kuala Lumpur.

Overview of DSSB
Company name:  D'viation Solutions Sdn Bhd
Location: Selangor (Central region of Malaysia)
Established: 2012
Representative: Kevin Teoh Chong Tat
Business: Aircraft maintenance training and labor, aircraft light maintenance, and aviation consultancy
Website: https://www.dviation.com/
Overview of Karbon
Company name: KarbonMRO Services Sdn Bhd
Location: Selangor (Central region of Malaysia)
Established: 2023
Representative: Kevin Teoh Chong Tat
Main Business: Aircraft heavy maintenance, airframe and engine teardown, and business jets heavy maintenance
Website: https://karbon.aero/