WICHITA, Kansas: Spirit AeroSystems Holdings, Inc. has reached a definitive agreement to sell its advanced manufacturing facility in Subang, Malaysia to Composites Technology Research Malaysia Sdn Bhd (CTRM) for $95.2 million, the company announced August 8. The sale, subject to customary regulatory approvals and closing conditions, is expected to be completed in the fourth quarter of 2025. This landmark deal unfolds against the backdrop of Spirit’s impending merger with Boeing and a parallel agreement with Airbus, marking a pivotal reshaping of the global aerostructures supply landscape.
The Subang facility, occupying 45 acres at the heart of the Malaysian International Aerospace Centre, features a 400,000 square-foot manufacturing footprint and employs more than 1,000 staff. The operation specializes in the assembly of aerostructures, support services, and an integrated supply chain, benefiting from in-region material sourcing and skilled, cost-effective labor. This strong industrial footprint positions the site as a vital node in the global aerospace supply ecosystem.
Upon closing, CTRM will be propelled into a critical role as a direct supplier for major Airbus and Boeing aircraft programs. Specifically, CTRM will manufacture and supply parts for Airbus A220, A320, and A350 programs, as well as Boeing’s 737 and 787 jets. This deal significantly enhances Malaysia’s stature as an aerospace manufacturing hub and increases local participation in global aviation supply chains.
“This agreement with CTRM ensures a strong future for the Subang business and regional stakeholders in Malaysia. It also marks a milestone in Spirit’s strategic alignment with Boeing,” said Irene Esteves, Spirit AeroSystems’ executive vice president and chief financial officer.
Industry analysts point to the strategic rationale behind the divestment. Spirit, which has faced ongoing financial pressures, including a short-term liquidity squeeze and tightened margins, sees the facility’s sale as an opportunity to streamline its portfolio and boost its balance sheet ahead of its planned $8.3 billion acquisition by Boeing. The merger, which is expected to close in the fourth quarter of 2025 pending regulatory clearances, aims to generate significant cost and supply chain synergies for Boeing while ensuring continued work for Airbus by transferring key assets to the European manufacturer.
The divestiture is also viewed by observers as a proactive step to address concerns from competition regulators. By transferring the Subang operations to Malaysia’s CTRM, Spirit reduces potential concentration risks in the aerospace sector and encourages greater supply diversity for major manufacturers worldwide.
CTRM, a subsidiary of Malaysia’s DRB-HICOM Berhad and now a premier player in aerospace composites, has evolved into a Tier 2 supplier serving top Tier 1 aerospace integrators. Beyond aviation, the company’s expertise extends to non-aerospace composites, as well as offering support services such as testing, engineering, and supplier management. In recent years, CTRM has expanded its reach across the global supply chain, delivering advanced components for both commercial and military aircraft.
For Malaysia, this acquisition represents a substantial leap forward in its ambition to be a global center for aerospace technology and manufacturing excellence. The deal is expected to secure the jobs of the Subang facility’s current workforce and spur investment in advanced manufacturing and engineering capabilities in the region.
Spirit AeroSystems will continue to focus on its core operations in North America and Europe while facilitating a smooth integration for its employees and customers affected by this transaction. As global supply chains in aerospace continue to evolve, the transition of the Subang facility from an American-owned engineering powerhouse to a locally managed champion positions Malaysia at the forefront of the industry’s next chapter.
