US-based AeroThrust Holdings has signed a joint venture agreement to set up an aircraft engine maintenance repair and overhaul (MRO) facility in Bahrain.
The Bahrain Economic Development Board (EDB) announced the move to establish AeroThrust Gulf Aviation Services.
The company will provide full range of aircraft engine MRO services for the Pratt & Whitney JT8 and CFM International's CFM 56 series of engines.
The facility along with the test cell is expected to cover 94,000 sq ft. It will be completely dust free and incorporate the latest climate control technologies, tools and machinery, the EDB said in a statement.
AeroThrust Gulf Aviation Services is expected to invest around $20m over the next three years in its facility in Bahrain, it added.
Sheikh Mohammed bin Essa Al-Khalifa, chief executive of the EDB, said he was delighted that AeroThrust Holdings had decided to make Bahrain its home in the Middle East.
"We have worked closely with AeroThrust Holdings LLC to provide them with all the necessary support and this investment is a demonstration of the benefits of locating in Bahrain," he said.
"Going forward, we are keen to continue to work together as they build, staff and grow their operations in the kingdom".
Mario Abad, principal and owner of AeroThrust Holdings, added: "We considered a number of countries in the Middle East to establish an aircraft engine shop. Ultimately, we chose Bahrain for its strategic location, excellent support from the EDB and most importantly for the vision demonstrated by the Government of Bahrain to develop the aviation and aerospace sector."
He said the facilities in Bahrain will be on par with its Miami operations.
Vijay Arumbakkam, chairman, AeroThrust Gulf, said the company would target business in the MRO market in the Middle East, Africa and the Indian Sub Continent.
"There are only a few established aircraft engine service providers in the Middle East and there is significant potential to assist and provide incremental value to airline operators that currently use either Europe or North America as their base for MRO services."
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