KUALA LUMPUR (Aug 19): GTA Holdings Bhd paused its planned Middle East expansion while the aircraft repair firm assesses the risks amid the ongoing conflict in the region.
Extensive discussions have been held during a visit to the Middle East in February but the plan is now on hold, managing director and chief executive officer Datuk Nonee Ashirin Mohammed Radzi said after the firm’s prospectus launch on Wednesday.
“We are looking at the current security situation and we are talking to the local parties and trying to understand when it's a good time to go back in there,” she said.
Based in Selangor, GTA mainly provides maintenance, repair and overhaul — services mostly known as MRO in the aviation industry — for both helicopters and fixed-wing engines. The company also sells aviation equipment, including new engines, engine modules and parts.
GTA had earmarked RM10 million, or 14% of the RM71.75 million proceeds from its initial public offering (IPO), to expand its helicopter MRO activities in the Middle East.
Nonee Ashirin stressed that GTA has not abandoned its geographical expansion plans, but would assess the risks posed by the current situation before proceeding. In the meantime, GTA is looking at opportunities closer to home, including Brunei.
“We are able to, in a couple of days, I think there will be further announcements about Brunei,” Nonee Ashirin said. “So we are looking somewhere closer.”