KUALA LUMPUR - Malaysia Airlines and General Electric Company (GE) of the United States have signed a Memorandum of Understanding for a joint venture that will establish a Center of Excellence in engine overhaul at the Malaysia Airlines Aero facility in Subang, Malaysia.

The Aero Center of Excellence, the first of its kind in Southeast Asia, will service GE's Asia Pacific customers currently being serviced in the United States and Europe.

"This joint venture is significant for the country, company, and customers. It is also notable that General Electric, one of the world's largest, technology-rich, blue chip companies will enter into a joint venture with Malaysia Airlines. This is a strategy that we have actively emploed to fast-track the importation of technology and skills in a mutually beneficial way.

"The benefits are many: Malaysia upgrades its current aerospace technological capability, accelerating our ability to develop indigenous technology and moving us toward becoming an aerospace hub; the company, Malaysia Airlines, benefits through upgraded fleet support and improved proficiency and productivity, and the employees benefit from advanced training in leading-edge technology from a world-class company like GE," said Tan Sri Tajudin Ramil, chairman of Malaysia Airlines.

GE intends to make the facility the Asian Center of Excellence "through GE investment; and by combining resources with Malaysia Airlines, we intend to make the Kuala Lumpur shop a world-class operation that will drive future growth," said Bill Vareschi, president of GE Engine Services Inc.

Malaysia Airlines brings to the venture a state-of-the-art facility and a trained work force. The GE contributions will be in technology, manufacturing processes, and management expertise.

Expected to be finalized later this year, with joint venture operations to commence in January 1997, the facility will specialize in maintenance and overhaul of aircraft engines, including CFM56 engines produced by CFM International and PW4000 engines produced by Pratt & Whitney, as well as APS 2000 auxiliary power units.