Asia Digital Engineering secures US$100m to support expansion plans

Asia Digital Engineering (ADE), the maintenance, repair and overhaul (MRO) subsidiary of Capital A Bhd, has secured US$100 million in funding to accelerate its expansion plans in Malaysia and the wider region. The investment, obtained from OCP Asia Ltd, will finance the construction and operational rollout of a new 14-line aircraft maintenance hangar facility in Sepang, according to the company.

The new facility is designed to handle heavy and line maintenance for AirAsia fleet types as well as aircraft from third-party airlines. Capital A chief executive officer Tony Fernandes said at the signing ceremony that the project is intended to underpin ADE’s long-term growth by increasing capacity and broadening its customer base.

The investment is also earmarked for ADE’s broader business expansion beyond the initial 14 maintenance lines, with plans indicating potential growth to 20 lines as demand increases. Industry projections cited in connection with the deal estimate Malaysia’s MRO market could grow from about US$1.5 billion to US$2.5 billion by 2026, providing a larger addressable market for ADE’s expanded facilities.

ADE was established to consolidate and grow Capital A’s engineering and maintenance activities, and the new funding is expected to position the company as a more significant MRO provider in Southeast Asia as it scales up infrastructure and service capabilities.