skip to Main Content
EuroBLECH 2020 Postponed To March 2021 In Hanover, Germany

EuroBLECH 2020 Postponed To March 2021 In Hanover, Germany

EuroBLECH Digital Innovation Summit to take place in October 2020

Mack Brooks Exhibitions has announced the postponement of EuroBLECH, which was scheduled to take place at the Hanover Exhibition Grounds in Germany from 27 to 30 October 2020. The new dates for the next EuroBLECH, 26th International Sheet Metal Working Technology Exhibition, are 9 -12 March 2021. This decision was taken after extensive conversations with all exhibitors and partners over recent weeks and months who have expressed their preference not to hold the show in October, in light of the ongoing Covid-19 crisis. Uncertainties around travel restrictions in order to maintain the truly international character of the EuroBLECH event were also a concern to many participants.

Speaking about the announcement, Nicola Hamann, Managing Director of Mack Brooks Exhibitions said: “The past months have been challenging, in particular for the sheet metal working industry and its related industry sectors. We have seen a decrease in orders of capital goods and many companies are telling us about their challenges in dealing with the impact of the Covid-19 pandemic. Although we have recently received authority approval for our Safety and Security concept to hold EuroBLECH in October this year, we have decided to postpone EuroBLECH to Spring 2021”.

As part of a recent series of industry surveys, the participants of EuroBLECH indicated their requirement to network and conduct business in order to pave the way for the recovery of the industry following the Covid-19 pandemic. EuroBLECH will therefore offer a virtual hub for the global sheet metal working industry in October: “Following feedback from our exhibitors and visitors indicating the need to participate in an event, even if not in a physical form, we will organise a Digital Innovation Summit taking place from 27 to 30 October, our planned event slot. This Digital Innovation Summit will provide our exhibitors with a platform to demonstrate their latest machines and solutions and arrange virtual meetings with international visitors. We believe it is our duty to assist the industry through these extraordinary times by offering a market place this year as a platform for innovations and a starting point for the recovery of the industry”, continued Nicola Hamann.

The EuroBLECH Team will communicate closely with customers and partners over the coming weeks and months and thank their exhibitors, partners, suppliers and visitors for their support during this challenging time. Further information on the Digital Innovation Summit containing details on the Online Presentation Theatre for exhibitors, video on demand options and matchmaking facilities, will be available shortly.

For other exclusive articles, visit


Check these articles out:

Schneider Electric Innovation Summit Singapore: Powering And Digitising the Economy

Hexagon WORKPLAN 2021: Enhancing Automation In The Sheet Metal Market

A Company At The Heart Of The Car Industry

Fibre Laser or CO2 Laser—Which Will Prevail?

DOST Metals Industry Research and Development Center Is Mass Producing 5000 Face Shields Daily

Global Light Vehicle Market To Decline 17.2 Percent In 2020



FOLLOW US ON: LinkedIn, Facebook, Twitter



ASEAN Automotive On The Road To Recovery

ASEAN Automotive On The Road To Recovery

Despite continued softness in the market, the automotive manufacturing market is steadily moving towards recovery. According to Globaldata, although the global light vehicle sales fell 33.8 percent in May compared to a year ago, it showed an improvement from April when sales fell a record low of 47.5 percent. Analysts believe markets will begin the long climb back and we will begin to get more signals on market demand for the rest of the year.

In fact, China will lead the global auto market recovery. With automotive production and supplies resuming and China lifting restrictions on the movement of people and goods since early April, vehicle sales have started to stabilise.

Here, we take a look at the latest developments in the ASEAN automotive market and its road to recovery:


With phase 4 of relaxations, Federation Of Thai Industries (FTI) expects gradual recovery of the automotive market as businesses restart operations.

However, May vehicle production production was down 69.1 percent in May YOY, totalling 56,035 units. They noted that 2020 vehicle sales could be 700,000 units if the outbreak stays under control, or 500,000 units if local infections continue into September. 

Furthermore, 50 percent decline is expected for the auto parts market, but the Auto Parts Industry Club expects gradual recovery of auto parts industry as Thailand enters Phase 4 relaxation

  • AAPICO Hitech (AH) expects losses in its Q2/2020 amid the continuing decline in the local automotive industry from the beginning of the year due to the pandemic, Marklines cited a Thun Hoon report. Among AH’s businesses is the manufacture of OEM automotive parts. The company, according to the report, plans to boost its production capability this year to serve new auto parts products.
  • Mazda has reported sales of 1,602 vehicles in May 2020, down by 60 percent YoY, but up by 58 percent from the previous month. In a statement, Mazda is seeing positive signs that the automotive market is gradually recovering, given increased sales in every segment.
  • Mazda has announced that it will resume two-shift operations at all its plants in Japan in July. Its plants in Thailand and Mexico will be operating on limited days. Mazda expects global production volume in July to increase by 50 percent from June, according to a MarkLines report citing Nikkan Jidosha Shimbun
  • Auto parts maker T. Krungthai Industries Public Ltd (TKT) has over THB500 million ($16.15 million) worth of backlog order in hand, waiting to be delivered to customers, according to MarkLines, citing a Thun Hoon report. TKT expects sales to recover in the second half of 2020.


GAIKINDO, Indonesia’s automotive manufacturers association, reported Indonesia’s total vehicle sales in May 2020 were 3,551 units, down by 95.8 percent YoY due to the coronavirus. Meanwhile, the government is encouraging innovation through its Industry 4.0 program which includes the automotive industry and EV industry.

Although sales have experienced a downward trend since the beginning of the year, PT Suzuki Indomobil Sales (SIS) remains optimistic that it can increase its market share this year. From January to April 2020, Suzuki’s market share increased to 11.5 percent, compared to 9.3 percent in the same period last year. (GAIKINDO)


According to the Vietnam Automobile Manufacturers’ Association (VAMA), automobile sales declined 30.6 percent YOY to 19,081 units in May.

Vietnam ratified a free trade agreement with the European Union that will cut or eliminate 99 percent of tariffs on goods traded between the Southeast Asian country and the bloc, and provide Vietnam with a much-needed post pandemic boost, according to Bangkok Post. Vietnam will have a transition period of up to 10 years for some imports, such as cars. With this, insiders predicted the domestic automobile market will prosper in the last six months of the year and domestic automakers have the opportunity to develop as well as compete with imported cars. (VNS)

  • Toyota Vietnam has announced sales of 4,311 units in May 2020, up by 48 percent from April. (Auto Daily)
  • VinFast Production and Trading LLC announced in April that the inauguration and start of production of its automobile manufacturing plant will take place in June 2019 instead of September 2019 as previously planned.


Malaysian Automotive Association (MAA) reported new car sales decreased 62.2 percent YoY in May. They expect sales volume for June 2020 to be higher than May as businesses resume after restrictions for economic activities are lifted and sales tax exemption announced by the government.

Furthermore, The Malaysia Automotive, Robotics and IoT Institute (MARii) estimates a 28 percent drop in new car sales in 2020 due to the Movement Control Order (MCO) brought about by COVID-19, and that a minimum 500,000-unit total industry volume is needed in 2020 for automotive businesses’ continued survival.

  • The Malaysian government has agreed to reduce the sales tax for new vehicles for six months until December to revitalise the market, according to a report from New Straits Times.
  • For the 1Q 2020, UMW Holdings Berhad registered a lower revenue as disruptions caused by the COVID-19 pandemic led to lower sales in the automotive and equipment businesses.
  • In May 2020, PROTON sold 5,676 vehicles, accounting for an estimated market share of 23.3 percent, but down by 46.5 percent compared to last year. Sales in May, however, was a 73 percent improvement over that of March. For January to May 2020, PROTON’s sales volume declined by 23.3 percent, while the overall industry dropped by 48.7 percent over the same period.
  • Perodua has sold 52,920 vehicles as of the first five months of 2020, giving it a 41 percent market share against an estimated year-to-date total industry volume of 129,401 units.


Operations of both assembly plants and dealerships have resumed with easing of restrictions. The Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA) reported a 84.6 percent decrease in May car sales YoY. According to Philippine Star, however, May’s production figure of 4,788 units was a vast improvement over the 133 units manufactured in the previous month. Furthermore, CAMPI expects total vehicle sales to drop 20 percent in 2020 due to the pandemic.

  • Auto parts makers have renewed their call to the government to support local parts manufacturing by implementing higher duties on vehicle imports and prevent small and medium parts makers from closing shop amid the COVID-19 pandemic, according to a Philippine Star report.
  • Comprehensive Automotive Resurgence Strategy (CARS) program
    • Government introduced Incentives to encourage investments in vehicle manufacturing, while manufacturers have to manufacture at least 200,000 units of enrolled vehicle model within six years
    • According to the Department of Trade and Industry (DTI), volume of vehicles required to be produced will remain unchanged even if automakers are unable to reach the target

For other exclusive articles, visit


Check these articles out:

Aircraft Milled Parts Market To Reach US$4.3B In 2025

APAC Demand For Machine Tools On The Upswing As Manufacturers Invest In New Production Facilities

5G Integration In IIoT Systems Accelerates Industry 4.0 In The Wake Of Pandemic

FTI Spurs Thai Automotive Market With Proposed Measures

BMW And Mercedes Put Autonomous Drive Collaboration On Hold Due To COVID-19

Automotive OEMs Must Improve Online Sales Models To Mitigate COVID-19 Sales Slump

Shutdowns To Cost European Auto Industry GBP 29 Billion

Global Auto Sales In The Wake Of COVID-19




FOLLOW US ON: LinkedIn, Facebook, Twitter




Global Robotics Technology Market To Top $170B By 2027

Global Robotics Technology Market to Top $170B by 2027

The global robotics technology industry was estimated at $62.75 billion in 2019, and is expected to hit $170.08 billion by 2027, registering a compound annual growth rate (CAGR) of 13.5 percent from 2020 to 2027, according to a new report by Allied Market Research.

The rise in need for automation and safety in organizations, availability of affordable and energy efficient robots, increase in deployment of robots in several industries, and surge in labour and energy costs are driving the growth of the global robotics technology market. On the other hand, high implementation costs and lack of awareness about automation among the SMEs impede the growth to certain extent. However, growth in adoption of robotics technology across the world is projected to create multiple opportunities in the industry.

READ: Nissan Teaches Robots To Make Replacement Parts For Cars

READ: oshiba Spot Welding Inspection Robots Revolutionises The Automotive Industry

COVID-19 Scenario

Due to the global lockdown, there has been a lack of demand for automated machines from the construction, automotive, and many more other industries which, in turn, has impacted the robotics technology market badly. Also, disruptions in the supply chain have curtailed down the growth to some extent.

However, with several relaxations coming up over the restrictions, the market is expected to make up the blocks soon.

Hardware Segment to Lead the Trail

Based on component, the hardware segment contributed to nearly three-fourths of the global robotics technology market share in 2019, and is expected to retain its dominance by the end of 2027, owing to the fact that hardware components are cheaper than software modules and are also faster to deploy.

The service segment, on the other hand, would grow at the fastest CAGR of 16.7 percent throughout the forecast period. Rise in need of different services such as managed services and professional services propel the growth of the segment.

READ: Collaborative Robotics Market Value To Reach $9.7 Billion By 2025

READ: Collaborative Robots And The 4 Cardinal Questions For Successful Adoption

Manufacturing Segment to Dominate End-application

Based on application, the manufacturing segment accounted for more than three-fourths of the global robotics technology market revenue in 2019, and is anticipated to rule the roost by 2027. This is attributed to high labour costs, new safety regulations, and stringent emission norms issued by several government bodies.

Simultaneously, the aerospace & defence segment would portray the fastest CAGR of 16.7 percent during the study period. Increased rate of unmanned systems, high-end technological advancement, and surge in government expenditure fuel the segment growth.

Asia-Pacific to Maintain Top Status Until 2027

Based on geography, Asia-Pacific held the major share in 2019, generating more than two-thirds of the global robotics technology market. The same region would also manifest the fastest CAGR of 14.4 percent till 2027.

The rise in growth in automation and intensive R&D in a number of countries including Japan, China, India, Australia, and Taiwan is driving the market growth. Meanwhile, North America is anticipated to portray the CAGR of 13.3 percent from 2020 to 2027.


For other exclusive articles, visit


Check these articles out:

Bearing Solutions And Dynamic Motion Systems For Robot-Based Automation

Industrial Robots: Robot Investment Reaches Record US$16.5 Billion

Universal Robots Future-Proofs Production Processes In Southeast Asia With Collaborative Robots

Flexible Production With Bending Robots And Encoding Automation

Helping Customers Move Towards Industry 4.0

Robots On Subscription: RaaS Model In The APAC Region

Industrial Control Robotics⁠—The Next Great Leap In Manufacturing And Automation



FOLLOW US ON: LinkedIn, Facebook, Twitter



GlobalData: Global Vehicle Market Is Over The Worst

GlobalData: Global Vehicle Market Is Over The Worst

Data compiled by GlobalData shows that global light vehicle sales fell 33.8 percent in May to 4.9 million from 7.5 million a year ago.

“The May result is an improvement on April’s showing when sales fell 47.5 percent bringing a record low SAAR for the global market,” says Calum MacRae, Automotive Analyst at GlobalData.

READ: Frost & Sullivan: Digital Retailing And Vehicle Leasing To Propel Automotive Recovery Path

READ: Automotive Manufacturing Developments In Southeast Asia Amid COVID-19

The global market in May was boosted by improvements in China’s light vehicle sales which were 8.1 percent ahead at 1.94 million.  The worst performing regions were South America, down 70 percent to just over 114,000 units and Europe down 54 percent to just under 850,000 units.

GlobalData’s forecast for the year stands at 73.7 million light vehicles sold globally, 17.2 percent down on 2019’s result.

MacRae points out that May’s results mean that year-to-date, the global light vehicle market is down a hefty 31.3 percent, but with the seasonally adjusted annualised running rate (SAAR) up to 59.8 million in May from April’s record low of 48.2 million.

READ: Automotive OEMs Must Improve Online Sales Models To Mitigate COVID-19 Sales Slump

READ: Impact of COVID-19 On The Automotive Manufacturing Supply Chain

“May’s results affirmed our belief that April represented the low-point for the global market. We believe markets will begin the long climb back and we’ll begin to get more signals on market demand for the rest of the year,” says Macrae.

“The coming months will reveal the extent of economic scarring, if there’s any significant pent-up demand or if markets need a kickstart from government-sponsored scrappage schemes.”

For other exclusive articles, visit


Check these articles out:

Thailand’s Roadmap To Become The Regional EV Hub By 2025

Making the Industry More Sustainable with the Circular Economy

Ford & Toyota—First Automakers To Suspend Production In Vietnam Due To Covid19

Mouldmakers Turn To Process Automation In Race To Recover

The Global Aluminium Castings Market To Grow By US$32.1 Million Despite The Pandemic

OnRobot Launches Three-Finger Electric Gripper For Handling Of Cylindrical Objects

Smart Manufacturing Market to Reach US$573B By 2027

Rolls-Royce Uses Light 10 Billion Times Brighter Than Sun To Improve 3D Printing



FOLLOW US ON: LinkedIn, Facebook, Twitter



[WATCH] APMEN Speaks On The Impact Of COVID-19 On ASEAN’s Metalworking Industries

[WATCH] APMEN Speaks On The Impact Of COVID-19 On ASEAN’s Metalworking Industries

In a webinar hosted by Taipei International Machine Tool Show (TIMTOS), Kenneth Tan, Publisher of Asia Pacific Metalworking Equipment News (APMEN) speaks about the impacts of the pandemic on ASEAN’s metalworking industries, including the automotive, and aerospace & MRO sectors and what we can expect in the post COVID-19 era.

Besides the ASEAN region, the webinar, organised by Taiwan External Trade Development Council (TAITRA), also addresses the impact of COVID-19 in the European and US markets. Other speakers include Gabriel Pankow, Head of Digital Editorial Office of mi connect and Michael Vaughn, Chief Consultant of Indiana Research Institute.

Watch the full webinar here:

For other exclusive articles, visit


Check these articles out:

LVD Launches Virtual Tech Summit For Metal Fabricators

What To Do With Your Coolant During Longer Production Stops?

Metals, Electronic Systems, External Manufacturing Slows Down Due To COVID-19

Taking metal to the cloud

ASEAN Vehicle Sales Down 19% In Q1 2020

Increasing Productivity And Quality Gains Through Digitalisation



FOLLOW US ON: LinkedIn, Facebook, Twitter


Global Spending On Defence Declines As Governments Allocate Funds To Reactivate The Economy

Global Spending on Defence Declines as Governments Allocate Funds to Reactivate the Economy

Frost & Sullivan has released a report that presents the impact of global spending on defence under three scenarios—gradual containment, severe pandemic, and global emergency. As governments around the world allocate funds to contain the COVID-19 pandemic and reactivate the economy, under the severe pandemic scenario, defence spending will stagnate at current levels for the short term (2020-2021). In the global emergency scenario, defence spending will reduce, though this will mainly depend on global and regional political conditions. But, in the long term, it will be cut by at least 10%, as witnessed in the past.

“The decline in GDP and the increase of budget deficits would have an impact on defence spending, but the effect would be lower than other industries,” said Alexander Clark, Aerospace & Defence Research Analyst at Frost & Sullivan. “Additionally, governments across the world will promote investments for national security and as potential investments for export revenue.”

READ: ASEAN Aerospace And MRO Industry In The Wake Of COVID-19

READ: COVID-19 Updates: Auto Makers Revving Up Production To Drive Market Recovery

Clark added, “With increasing geopolitical tensions, the regional defence spending ratio will remain unaffected as the underlying political factors continue to remain constant. Further, the United States, Asia and Europe, respectively, will remain the biggest consumers of defence products.”

Despite this, defence market participants are likely to increase revenue realisation from a services portfolio by redesigning their strategies and customer engagement models, including:

  • Mergers and acquisitions: Identify businesses/SMEs whose acquisition/partnership would diversify and strengthen the existing portfolio.
  • Vertical integration: Focus on offering aftermarket services such as simulator training, PBL contracts, spare parts or maintenance, repair, and operating (MRO).
  • Robotics and artificial intelligence: Develop and upgrade products that serve military-medical, commercial-security, containment, and logistics purposes.
  • Chemical, biological, radiological and nuclear defence (CBRN): Strategic acquisitions or diversification of product portfolio should include CBRN protective clothing and equipment.


For other exclusive news and information, visit


Check these articles out:

Manufacturing In Asia Post COVID-19

Aftermarket Services Could Help Transform Manufacturing In The Wake Of The COVID-19 Pandemic

PC-Based Control For Covid-19 Rapid Testing Production Lines

[WATCH] Siemens Discusses Initiatives, Outlook Amid COVID-19

UMW Holdings Contributes RM1.3 Million To Fight Covid-19 Including Internally Produced PPE

Impact of COVID-19 And How The Crisis Is Shaping Universal Robots



FOLLOW US ON: LinkedIn, Facebook, Twitter



Gates To Donate More Than $535,000 To COVID-19 Response

Gates To Donate More Than $535,000 To COVID-19 Response

Gates a leading global provider of application-specific fluid power and power transmission solutions, has announced charitable donations of more than $535,000 in support of organisations responding to the COVID-19 pandemic. Directed by the company’s global headquarters in Denver, the Gates Industrial Corporation Foundation (Foundation) is working with nearly 100 Gates facilities around the world to identify and help fund local nonprofits that are making a difference. The Foundation is also offering double matching for U.S. employee donations to COVID-19-related organisations in this time of greatest need.

Responding quickly to the global outbreak, Gates initiated the charitable initiative with a substantial donation to the Hubei Charity Federation to support the medical needs in the area where the virus is believed to have originated. The aid campaign now spans other parts of South and North America, Europe, Middle East and Africa; Greater China; and East Asia and India, including 17 locations across the United States. Among the recipient organisations are chapters of large NGOs, such as the United Way and the American Red Cross, as well as local hospitals, food banks and other humanitarian organisations.

Donations, totaling more than $535,000, are being provided on an unrestricted basis to allow recipient charities maximum flexibility to address the most urgent needs in their area. Among those are Personal Protective Equipment (PPE) for frontline medical professionals and health care services and food and housing for the most vulnerable populations impacted by the pandemic.

In addition to its worldwide charitable donation initiative, Gates continues to actively monitor, manage and adapt to the evolving pandemic. Thanks to prompt implementation of COVID-19 safety protocols at all of its approximately 100 plants, offices, labs and distribution centers around the world, Gates has been able to continue serving its customers and maintain employment levels while protecting the health and safety team members, their families and communities.


For other exclusive news and information, visit


Check these articles out:

Increasing Fluid Power Capabilities With Metal Additive Manufacturing

Integrated Measurement Technology For Maximum Quality

ABI Research Names Siemens A Leader In Manufacturing Simulation Software

Large-Scale Metrology For Oil Industry Production

How To Increase Energy Efficiency With Machine Tools

3D Systems Introduces New Metal And Dental 3D Printers

Frost & Sullivan: Digital Retailing And Vehicle Leasing To Propel Automotive Recovery Path

Mitsubishi To Export Philippines Manufactured Units To ASEAN



FOLLOW US ON: LinkedIn, Facebook, Twitter



The Global Aluminium Castings Market To Grow By US$32.1 Million Despite The Pandemic

The Global Aluminium Castings Market To Grow By US$32.1 Million Despite The Pandemic

Amid the COVID-19 crisis and the looming economic recession, the aluminium castings market worldwide will grow by a projected US$32.1 million from 2018 to 2025, driven by a revised compounded annual growth rate (CAGR) of 6.1 percent, according to a new report by Global Industry Analysts Inc.

Die casting, one of the segments analysed and sized in this study, is forecast to grow at over 6.7 percent and reach a market size of US$51.3 million by the end of the analysis period. An unusual period in history, the coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. The die casting market will be reset to a new normal which, going forward in a post COVID-19 era, will be continuously redefined and redesigned. Staying on top of trends and accurate analysis is paramount now more than ever to manage uncertainty, change and continuously adapt to new and evolving market conditions.

The United States is forecast to readjust to a 4.9 percent CAGR, while within Europe, Germany will add over US$971.8 thousand to the region’s size over the next seven to eight years. In addition, over US$938.1 thousand worth of projected demand in the region will come from the rest of European markets. In Japan, the die casting segment will reach a market size of US$2.4 million by 2025.

Amid the growing push for decoupling and economic distancing, the changing relationship between China and the rest of the world will influence competition and opportunities in the aluminium castings market.

Against this backdrop and the changing geopolitical, business and consumer sentiments, the world’s second largest economy will grow at 10.2 percent over the next couple of years and add approximately US$8.5 million in terms of addressable market opportunity.


For other exclusive news and information, visit


Check these articles out:

APAC Demand For Machine Tools On The Upswing As Manufacturers Invest In New Production Facilities

ANCA Launches CIM3D V9 With Time-Saving And User-Friendly Enhancements

Mikron Predicts Order Intake To Improve Due To Global Economy Recovery

Vietnam’s Economy To Remain One Of The Fastest Growing In Asia Despite Sharp Slowdown Due to COVID-19

Automotive Additive Manufacturing Market Sees $9B Opportunity On The Horizon

New High-Definition Feature Scanner For Automated Inspection

CNC Machines Market Forecast



FOLLOW US ON: LinkedIn, Facebook, Twitter


Mouldmakers Turn To Process Automation In Race To Recover

Mouldmakers Turn To Process Automation In Race To Recover

As production begins to ramp up in some sectors, mould and die manufacturers turning to automation of design and manufacturing to regain lost revenues.

Swoosh Technologies & Solutions, a certified-Smart Siemens Digital Industries Software business partner, has noticed more interest in mould and die-specific programs that automate tasks in the design and manufacturing of moulds.

“By automating some of the more tedious and predictable steps in the production process like creating parting surfaces or feature recognition for CNC programming, manufacturers can step up the speed of production throughput with the workforce they have in place,” notes Dan Wibbenmeyer, Managing Partner at Swoosh Technologies.

“And in an industry like consumer products or automotive, speed of delivery and cost will determine who receives the order.”

A recent survey from the American Mould Builders Association found that most plant operations fared well during the first few months of the COVID-19 pandemic operating at full capacity, while only two percent had to shut down operations entirely. Those who specialise in the medical device market are seeing the highest production levels with 91 percent of companies reporting they are 90-100 percent staffed and 55 percent looking to add staff.


For other exclusive news and information, visit


Check these articles out:

How Is COVID-19 Impacting The Aircraft MRO Industry In SEA?

Coronavirus Outbreak Reveals the Weakest Links In The Supply Chain

A Company At The Heart Of The Car Industry

Collins Aerospace To Build Aerospace Innovation Hub In Singapore

Industrial Automation Sector Amid COVID-19 Pandemic

Automotive Manufacturing Developments In Southeast Asia Amid COVID-19

Mould Technology Solution Centre Groundbreaking Ceremony

Hexagon Enhances Smart Factory Solutions With Acquisition Of Romax Technology

Frost & Sullivan: Digital Retailing And Vehicle Leasing To Propel Automotive Recovery Path



FOLLOW US ON: LinkedIn, Facebook, Twitter


ASEAN Aerospace And MRO Industry In The Wake Of COVID-19

ASEAN Aerospace And MRO Industry In The Wake Of COVID-19

The COVID-19 pandemic has an unprecedented adverse impact on the aviation industry and, consequently, on the MRO business, without clear visibility on the timing of its recovery, according to Singapore-based SIA Engineering Co. Ltd. Border controls imposed by countries worldwide and the precipitous decline in travel demand has forced drastic cuts in flight capacities and grounding of aircraft.

In response to the worsening crisis, the International Air Transport Association (IATA) is projecting a more realistic U-shaped recovery for the air travel industry, with domestic travel coming back faster than the international market. 

Many expect that because of the impact of the pandemic, activity in the commercial aerospace market will take several years to return to the levels seen just a few months ago. Some players in the aerospace manufacturing industry, including Boeing and Rolls-Royce, have even announced workforce reduction and production cuts.

However, Boeing is seeing some green shoots. Some customers are reporting that reservations are outpacing cancellations on their flights for the first time since the pandemic started, while some countries and U.S. states are starting cautiously to open their economies again.

  • Boeing, in fact, has resumed production of the 737 MAX at the company’s Renton, Washington factory.
  • On 14 April 2020, IATA released an updated analysis showing that the COVID-19 crisis will see global airline passenger revenues drop by US$314 billion in 2020, a 55 percent decline compared to 2019. Airlines in Asia Pacific will see the largest revenue drop of US$113 billion in 2020 compared to 2019 (-US$88 billion in 24 March estimate), and a 50 percent fall in passenger demand in 2020 compared to 2019 (-37 percent in 24 March estimate).

According to Oliver Wyman:

  • As of late April, over 65 percent of the pre-COVID fleet of 27,500 commercial aircraft have been parked
  • The current trajectory for fleet reductions and lower aircraft utilisation would reduce global MRO demand in 2020 by over $48 billion, or 53 percent

Here’s an update of what has been happening in ASEAN’s aerospace and MRO industry amid the ongoing COVID-19 pandemic.


  • Indonesia’s national airline, Garuda Indonesia, has resumed domestic flights starting May 7, 2020.
  • PT Garuda Maintenance Facilities (GMF) AeroAsia expects to see increasing demand for MRO services from non-affiliated international airlines and has projected an 80 percent y-o-y increase for MRO services, from 71 percent in 2019


  • AirAsia is set to gradually resume services in the Philippines on June 5, 2020, following the Philippine government’s directive of easing community quarantine restrictions in Metro Manila and several parts of the country. The resumption of services will initially be for key domestic routes, and will gradually increase to include international destinations by July 1.
  • Air Carriers Association of the Philippines (ACAP), comprising: Philippine Airlines, Cebu Pacific and AirAsia Philippines, sees the industry shrinking in the next two years. The association has requested government assistance, including waiver of airport charges and credit guarantees
  • Infrastructure projects still ongoing: Lufthansa Technik and Metrojet Engineering


  • Airbus withdraws from MRO joint venture with Thai Airways
  • Thai Airways has filed for bankruptcy protection to rehabilitate business (to restructure under the supervision of the local bankruptcy court). Will not resume its international flight operations until 30 June.
  • The proposed MRO project at the U-Tapao Airport will proceed as planned despite Thai Airways International (THAI) entering bankruptcy. The THB11 billion project has already been approved by the Cabinet and a contract is expected to be signed in June. (The Nation Thailand)


85 percent of the Singapore industry is involved in maintaining and repairing aircraft. Singapore also plays a small but critical role in the global aerospace supply chain, with its SMEs having a key role in MRO and manufacturing—supporting special processes, tooling, testing, logistics, manpower, and other services. (Association of Aerospace Industries Singapore)

  • SIA has announced that it will resume flights to 27 destinations and increase no. flights for other services in June & July
  • Government has set aside S$750 million of support for the aviation sector and consolidation is expected to happen over the next 12 to 18 months.
  • Collins Aerospace, which just opened a 10,000 sq ft innovation hub in Singapore, is “monitoring the evolving market conditions very closely”. 
  • Rolls-Royce has scaled down its operations in its facility which tests Trent aero engines (Channel News Asia)
  • ST Engineering 
    • expects a slowdown in its aerospace unit due to deferred MRO services and lowered original equipment production rates 
    • however, the company has secured about $838 million across its spectrum of aviation manufacturing and MRO businesses
      • The MRO contracts included A320 heavy maintenance contracts and CFM56-7B engine maintenance contracts from Chinese airlines, and a component Maintenance-By-the-Hour (MBHTM) contract from a Southeast Asian airline to provide comprehensive component maintenance services for its entire fleet of Boeing 737 and Bombardier Q400. 
    • The Group is discussing with its customers to adjust delivery schedules or address order cancellations due to the evolving crisis. As at the end of 1Q, the Group’s order book remains robust.
  • BOC Aviation, a company involved in aircraft sales and leasing has extended its Engine MRO contract with Lufthansa Technik for another five years.
  • Through the enhanced Jobs Support Scheme (JSS), companies such as ST Engineering and SIA Engineering Company (SIAEC) will receive millions in additional wage support to cushion the devastating blow that COVID-19 has dealt the aerospace industry. (The Business Times)


  • Suspended all international and most domestic flights in March and April in an effort to curb the spread of the coronavirus, domestic flights have resumed since April 22, after the government lifted a lockdown order, while international flights are expected to partially resume from June 1.
  • Will not consider applications for new airlines as it looks to prioritise the recovery of its aviation sector after the impact of the novel coronavirus, according to the Civil Aviation Authority of Vietnam (CAAV). (Bangkok Post)


For other exclusive news and information, visit


Check these articles out:

Share Your Insights: COVID-19 & Your Business

Developing Asia Growth To Fall In 2020 On COVID-19 Impact

COVID-19 Updates: Auto Makers Revving Up Production To Drive Market Recovery

ST Engineering Drops Dormant Subsidiary From Aerospace Arm

Siemens Workplace Distancing Solution Helps Manage ‘Next Normal’ Manufacturing

GE Aviation And SIAEC Establish Joint Venture

Growth Of Malaysia’s Aerospace Industry

ST Engineering’s Cybersecurity Solutions Gains Global Recognition

Global Aerospace 3D Printing Market Poised To Surpass $2,857 Million By 2024



FOLLOW US ON: LinkedIn, Facebook, Twitter




Back To Top