SUBANG, Malaysia - Collins Aerospace, an RTX (NYSE:RTX) business, has expanded its maintenance, repair and overhaul facility at Subang Aerotech Park in Malaysia with a $63 million investment, according to a press release statement issued today.
The expansion increases the company’s Selangor MRO footprint from 46,000 to 164,000 square feet. The transition to the new facility is planned for completion by the end of this year.The investment underscores RTX’s strong financial position, with the company generating $90.4 billion in revenue over the last twelve months and maintaining a market capitalization of $240.6 billion. According to InvestingPro analysis, RTX is a prominent player in the Aerospace & Defense industry and has maintained dividend payments for 56 consecutive years. The platform offers access to over 10 additional ProTips and comprehensive Pro Research Reports for RTX and 1,400+ other US equities.
The Subang facility will provide MRO capabilities for air cycle machines, heat exchangers, valves and new generation starters supporting various aircraft. The facility will utilize digital tier boards, eAndon, autonomous mobile robots and real time location systems.
"The Asia-Pacific region is a key growth market for the industry, and this investment ensures that we grow alongside our customers," said Irene Makris, president of Power & Controls at Collins Aerospace. "Malaysia offers the right environment for us to scale, and we are planning to double employment opportunities for skilled talent in the region to keep pace with growing demand."
The facility incorporates a building management system to monitor resource and utility consumption. Collins Aerospace currently employs 150 people in Malaysia and 10,000 people across 24 locations in eight Asia-Pacific countries, including Singapore, China, India, Australia, Japan, Korea and the Philippines.
"Malaysia warmly welcomes Collins Aerospace’s expansion of its MRO footprint in Subang, a vote of confidence not just in our infrastructure, but in our people and our long-term potential," said YB Loke Siew Fook, Malaysia Minister of Transport.
Since 2021, Collins has completed MRO expansions in the Asia-Pacific region including capabilities for electrical power systems, environmental and airframe control systems and engine control systems.
In other recent news, Raytheon, a business unit of RTX, announced a $100 million investment to expand its Portsmouth facility to boost production capacity for missile defense systems, creating 150 jobs in the process. Additionally, Raytheon secured a $515 million contract from the U.S. Navy for its SPY-6 radars, which includes upgrading Flight IIA destroyers with the SPY-6(V)4 variant. Meanwhile, the Pentagon is expected to cancel a planned Tomahawk missile sale to Germany due to concerns about escalating tensions with Russia, leaving Germany without a defense system it considers crucial.
On the financial front, Jefferies upgraded RTX’s stock rating to Buy from Hold, citing an improved margin outlook and raising the price target to $220. S&P Global Ratings also revised its outlook on RTX to positive from stable, highlighting strong aerospace demand and RTX’s expected maintenance of leverage below 2.5x. The ratings firm affirmed RTX’s BBB+ issuer credit rating, noting robust cash flow supported by defense product demand. These developments reflect RTX’s strategic moves and the financial community’s positive response to its market positioning.
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