MOU signed by the parties for Aviation Industrial Cluster in Muan Region of South Korea
On January 5, 2011, an MOU (Memorandum of Understanding) was signed by Governor of Jeonlanam province Park Jun Young, Mayor of Muan city Seo Sam Suk, Seabury Group’s Managing Director and Head of Asia-Pacific Consulting Myles Goeller, chairman of MRO company AAT(Avdome Aviation Technology) James Gim, and Vice President of KCFC(Korea China Future Aviation City) Hong Sang Eun at the government building of Jeonlanam province. The signing was a major step in the already initiated plan for developing an important MRO center and an aviation-dedicated industrial cluster in Muan. This ceremony was held for the purpose of securing investors. A workshop was held on January 6th and 7th between members of Seabury, AAT, KCFC, and government representatives. Important information was exchanged in order to take the most efficient steps towards achieving the Muan Enterprise City and MRO near the Muan International Airport. Seabury will offer financial and business consulting towards the MRO and Aviation Cluster plan to ensure its successful development and to help form partnerships with strategic partners and investors, drawing on their extensive knowledge and experience in the aerospace and MRO industries. Seabury Group is the largest independent global advisor to the aviation industry, with clients being airlines, Maintenance, Repair and Overhaul organizations (MROs), airline manufacturing companies, and more. They have served over 500 companies all over the world including Boeing, Cathay Pacific, and Alaska Airlines. Seabury’s consultants include top former aviation executives, investment bankers, and other experts of the aviation industry. Seabury has helped raise significant capital for airlines including $1.1 billion for US Airways in 2008, $2.2 billion for US Airways and America West Airlines in 2005, and $1.6 billion for Air Canada in 2004. The plan for Muan Enterprise City was approved by the government in 2006, to dedicate Muan to the aviation industry. The Muan city and Jeonlanam province governments welcome and encourage the plans for the future city. People with careers in the aviation industry will work and hold residence in this city including engineers and technicians. The Muan International Airport vicinity will include an aircraft R&D center, an components MRO, an engine MRO, an aircraft parts manufacturing, an aircraft and airline related equipment facility, an aviation school, and other aviation facilities. The plan entails Muan becoming a major hub for MRO aircraft maintenance and the aerospace industry. Myles Goeller, Managing Director and Head of Asia-Pacific Consulting, stated that Asia Pacific’s fleet growth is forecast to account for nearly half of the global fleet growth over the next 10 years. “Asia Pacific’s importance within the global aviation, MRO and Aerospace industries is expected to grow significantly in the coming years,” he said. The aviation cluster plan is an important undertaking because Northeast Asia is the fastest growing location for commercial aviation MRO in the world. Asia Pacific’s MRO industry, currently a $6 billion industry is projected to grow to be an $11.8 billion industry over the next 10 years. Muan is an ideal location for being a hub for MRO and the future aviation city because of its central location in Northeast Asia, between major cities in China, Japan, and Korea. Muan has major advantages over other locations for being an MRO center in Northeast Asia. Korean aviation-trained workers have higher productivity and skill than in China, while also having a lower cost of labor than in Japan, making it advantageous for Korea to fill this growing and upcoming gap in the aviation industry. Muan’s low cost of living and labor will enable it to take advantage of this growing demand of MRO and aerospace services in Northeast Asia. AAT and KCFC will also play major roles in the development of MRO and aerospace industries in Muan. AAT specializes in MRO aircraft maintenance services for commercial and military aircraft with an emphasis on serving the North East Asian aviation market. The members of AAT have specialized knowledge and expertise in the field of aircraft and MRO that will be instrumental in the actualization of the Muan project. KCFC is dedicated to establishing the future enterprise city in Muan city with joint efforts and investors from Korea and China. KCFC’s high hopes and vision of forming aviation-focused cultural and economic center in Muan will prove to be a necessary force in the development of this future city. The Muan MRO and future aviation city plan is still in its developing stages, but now, with the contributions from AAT, KCFC, Seabury Group, and the Muan city and Jeonlanam province governments, the course of the plan is secured for a successful implementation. Source: AAT
