A French aeronautic services company on Friday said it is working with the Airport Authority (AA) to develop the SAR into Asia’s first aircraft parts processing and trading hub.

The French firm, Elior Group, signed a memorandum of understanding with the authority last month to explore the possibility of providing services such as aircraft dismantling, parts recycling and related training in Hong Kong.

Its chairman Daniel Derichebourg said the company is looking forward to developing and exploring new opportunities in Hong Kong, and expanding its businesses across Asia.

The company also said it will discuss the topic of training local talents with the Hong Kong International Aviation Academy.

“The city has always been a prime location for foreign investment and international conglomerates,” said Secretary for Commerce and Economic Development Algernon Yau in a statement.

“Hong Kong will continue to play its unique role of connecting the mainland and the world to attract more companies from around the world to set up in the city,” he added.

Alpha Lau, the director-general of investment promotion at InvestHK – which will help Elior set up its Asia headquarters in Hong Kong – said: “The signing of this MoU is a testament to global businesses confidence in the Hong Kong market."

She added the move reaffirms "that Hong Kong is the ideal destination for companies to establish or expand their operations in the region”.

And transport minister Mabel Chan said she is pleased about the collaboration, which will enrich the SAR’s position as an international aviation hub and support the aviation development in the country and Asia.