BHIC And Boustead Group Soar High In The Aerospace Sector

Boustead Heavy Industries Corporation Berhad (BHIC), a company under Boustead Group, is a leading defence, security and marine contractor in Malaysia. It is also involved in the aerospace sector through BHIC AeroServices Sdn Bhd (BHICAS), a joint venture company by BHIC Defence Technologies Sdn Bhd (BDTS), a wholly-owned subsidiary of BHIC, which holds 51 per cent stake in BHICAS, together with Prestige Pillar Sdn Bhd and Airbus Helicopters Malaysia Sdn Bhd that hold 30 per cent and 19 per cent equity respectively.

BHICAS is located at the Helicopter Centre, Malaysia International Aerospace Centre (MIAC), Sultan Abdul Aziz Shah Airport in Subang, Selangor Darul Ehsan. MIAC, a core facility in the Malaysian aerospace industry ecosystem, was developed by Malaysia Airports Holdings Berhad with the aim to strengthen the industry, especially in helicopters maintenance, repair and overhaul (MRO).

Boasting a 4,080 square metres hangar, BHICAS is capable of providing a comprehensive range of services to helicopters. These include MRO; modification and upgrades/modernisation programme; airframe and structural inspection; component overhaul; aircraft painting; engineering services; training; support services; fieldwork (Aircraft On Ground); engineering and logistics support; interior refurbishment; test and certification; project management and long term support; and fleet management.

BHICAS’ MRO capabilities are certified by Airbus Helicopters as its Approved Service Centre for EC725, AS365N3 and AS555 helicopters. BHICAS is also an Approved Maintenance Organisation certified by Directorate General Technical Airworthiness for EC725 and AS365N3 helicopters.

Contribution towards GDP

The Government of Malaysia (GoM) has identified the aerospace industry as a strategic industry that has a wide potential for growth and offers exciting opportunities in the area of technological development. The National Aerospace

Blueprint, launched in 1997, charted the roadmap to transform Malaysia’s into a dynamic regional and international aerospace player by 2015.

The second strategic plan for the national aerospace industry, the Malaysia Aerospace Industry Blueprint 2030 (MAIB 2030), sets a vision for Malaysia to be the leading aerospace nation in South East Asia and an integral player within the global market by 2030. It also targets the industry to generate annual revenue of RM55.2 billion and create more than 32,000 high-income jobs by 2030.

As one of the leading aerospace service providers in Malaysia, BHICAS plays its part in contributing to the fulfilment of the MAIB 2030. The company’s revenue has grown significantly in the last decade, from a modest RM4.6 million in 2012 to RM56.8 million in 2020.

BHICAS offers comprehensive helicopter MRO services to military and para-military customers

Talent development and job creation

BHICAS puts a premium in developing talent, especially in high skills areas. In this regard, it puts a lot of effort to nurture the talent of Malaysians, especially amongst youths. The company provides opportunities to fresh graduates to participate in the Professional Training and Education for Growing Entrepreneurs programme (PROTÉGÉ).

Through this entrepreneurial and marketplace training program launched by the GoM in 2019, BHICAS contributes to the development of youths to create more competitive and marketable and skilled job seekers to meet current industry needs. A total of 36 trainees have already attended PROTÉGÉ at BHICAS between 2016 to 2020. Another 47 fresh graduates will be given the opportunity to participate in this program at the company until 2023.

BHICAS implemented the Industrial Collaboration Programme (ICP based on the requirement by the GoM for the In-Service Support (ISS) contract for Royal Malaysian Air Force (RMAF) EC725 helicopters from 24 March 2017 until 31 March 2020. The ICP will continue to be implemented in the current ISS contract for RMAF EC725 helicopters from 1 April 2020 until 31 March 2023.

One of the activities implemented under the ICP was Competency Development for Local Institutions in Aviation which provided competency development training for RMAF, Malaysian Maritime Enforcement Agency (MMEA), Royal Malaysian Navy (RMN) and personnel and students in local institutions in the field of aerospace technology and maintenance and repair. BHICAS contributes to competency development through Transfer of Technology (TOT) training packages and On the Job Training (OJT) conducted at its hangar. Through these programmes, BHICAS managed to create RM57.1 million in ICP Credit Value.

The TOT and OJT at BHICAS cover Aircraft Maintenance Experience, Typical Maintenance Tasks and Safety Practices. The TOT on aviation technology and maintenance and the OJT in Maintenance and Repair Work for Local Institution (Industrial Training) are carried out at BHICAS hangar, covering a duration of between 6 to 12 months and catering to 60 students.

Participants are exposed to hands-on experience in MRO works which include, among others, activities and syllabus covering EC725 Ground Handling (In House General Familiarisation); Hangar Safety and Workplace Housekeeping; Human Factors Workshop; Foreign Object Damage and Suspected Unapproved Parts Workshop; and Calibrated Tools and Precision Measuring Equipment.

TOT in Aviation Maintenance Management is conducted for RMAF officers over a period of 6 months at BHICAS. This training programme covers Basic Ground Handling; Maintenance Management Plan and Company Procedures; Aircraft Familiarisation; Safety Management System; Hangar Safety and Workplace Housekeeping; Foreign Object Damage and Suspected Unapproved Parts Workshop; Maintenance Program (Technical Log and Job Cards);; and Aircraft Accidents Investigation and Reporting.

Meanwhile, TOT in Aviation MRO is conducted for RMN, RMAF and MMEA personnel to provide them with hands-on working experience in the MRO aviation environment. The modules of the training cover Approved Maintenance Organization (AMO) Logistics including Parts By The Hour, Repair By The Hour and Consumables By The Hour program awareness and AMO Authorized Personnel Requirements workshop. TOT in AS365N3 Refresher Course is conducted for MMEA officers to provide them with refresher training on AS365N3 operation and maintenance.

Aerospace business growth

BHIC Chief Executive Officer, Sharifuddin Md. Zaini Al-Manaf said that the Company plans to further leverage its strength in the military aircraft sector by expanding its market base by way of servicing fixed-wing aircraft and the commercial aerospace segment.

“This is part of our strategy to grow our business beyond our core activities in the marine sector, namely in shipbuilding and ship repair. We have earmarked the aerospace sector as one of the key segments of growth for BHIC”, he said.

Underscoring its intent to grow its business in the aerospace industry, BHIC recently entered into a Memorandum of Understanding (MoU) with Airbus Defence and Space (ADS), a global leader in aeronautics, defence and related services. The MOU, signed on 8 June 2021, spells out the intention of both parties to co-operate on military aircraft maintenance, repair and overhaul (MRO) services in Malaysia.

Sharifudin added that BHIC’s joint venture in BHICAS with Airbus, a globally renowned company, is in alignment with Reinventing Boustead strategy to spur high performance across Boustead Group.

“We are aligned with Boustead Group’s initiative to enhance the use of technologies to create business opportunities and put the organisation on a stronger footing by leveraging the capabilities and advanced technology improvements.

“Such strategic alliance can create high-income job opportunities and spur human capital development for Malaysians, especially in high skills areas, in line with the national agenda of economic transformation”, he said.

This is the part 1 of the article

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