SUBANG: Airod Sdn Bhd is planning to invest RM170 million to expand its facilities to cater for more civil aircraft works, its Chief Executive Officer Datuk Kamil Aziz said today.

The expansion project, to be financed with loans, was crucial to the maintenance, repair and overhaul (MRO) firm to mitigate the effects of a declining military spending trend worldwide, he said.

Its current order book stood at RM2 billion, of which 70 per cent were contributed by the military segment, while the civil segment accounted for 30 per cent.

"I'd like to see us get to a 50:50 ratio by end-2014," he told reporters after signing an agreement with AAR Airlift Group Inc to provide MRO services worth RM50 million.

The initial tenure of the contract is for three years, with an option toextend to five years, Airod's biggest civil engineering contract so far.

Under the agreement, fifty-eight aircraft engines are expected to undergo MRO services at Airod in the initial period, with the first engine to be serviced as early as next month.

The US-based AAR Airlift Group is a leading provider of diverse products and services to the aviation industry worldwide, government and defence industries.

Airod, which secures contracts worth RM300 million to RM400 million a year, is currently in talks with several regional airlines.

"We hope to secure more contracts as the Asian aviation industry is currently booming," he added.

Meanwhile, Airod's RM40 million new hangar under construction here is set to begin operations next month.   

- Bernama