Sandpoint, Idaho-based Quest Aircraft is eying expansion in Asia under new Japanese ownership. The company was sold February 17 to Japanese firm Setouchi Holdings. Setouchi plans to keep the current leadership intact and continue manufacturing in Sandpoint.

In fact, Quest president and CEO Sam Hill stressed that the company’s vision and mission remain unchanged. “Quest is the same company it has been,” Hill said. But the new ownership provides much needed capital to enable the company to add to its product line, continue its product improvements and expand production.

Setouchi comes from a manufacturing conglomerate. Its parent is Tsuneishi Group, a global company engaged in shipbuilding, transportation and related industries. But its relationship with Quest began as its dealer.

Quest had named Setouchi’s subsidiary, Setouchi Trading, as an authorized dealer last summer, representing the Kodiak in Japan and parts of Southeast Asia. “Immediately, there was a bond,” Hill said. At the time Quest had been in search of additional investors.

Setouchi took a strong interest, Hill said. But after researching the company, Setouchi executives decided that they weren’t interested in a minority share; they wanted to buy the company. The Quest board of directors decided Setouchi was a good fit and moved forward with an agreement, Hill said.

The acquisition gives Quest a strong footprint in Southeast Asia. Setouchi is based in Tokyo and knows the region well. Under the dealership agreement signed in July, Setouchi Trading was representing the Kodiak in South Korea, Philippines, Thailand, Malaysia, Vietnam, Singapore and the Maldives, along with Japan.

Quest already has a number of aircraft in the field in Southeast Asia in mission use and was beginning to gain footing in commercial and other venues. But the company is hoping for further growth in commercial, government and private markets throughout the region. “We think it will position us very, very well,” Hill said.

He added that he believes the Kodiak, with its short-field takeoff and landing (STOL) capabilities, along with its availability for float operations, will work well for the region and its airports. The 10-place single-turboprop aircraft can take off in less than 1,000 ft at full gross takeoff weight.

While Setouchi represents the Kodiak in Japan and parts of Southeast Asia, Hill emphasized it fully supports Quest’ s previously announced letter of intent with SkyView Aircraft Industry Company for representation and eventual manufacturing of the Kodiak.

Under that deal, SkyView is the exclusive dealer for Kodiak in China, Hong Kong, Macau and Taiwan. The contract also outlines plans for limited assembly and eventual manufacturing of the aircraft there.

The companies are hoping to turn that LOI into a firm agreement, possibly this year. Without getting into details, Hill said the companies are approaching the agreement in three phases, from dealership to assembly of partially built kits to eventual manufacturing. But he did not have a definitive timeline, saying it could take three years or more to get a manufacturing facility up and running in China.

But the deal builds on a strategy the company put in place more than 18 months ago to build up its international presence, particularly in China. Hill told AIN that growth in the region “is going very well.” Quest has three operators in the country so far, and has more in the pipeline that may come to fruition this year. The company expects 10 aircraft to be delivered to SkyView customers in the 2014-through-2015 timeframe.

China is one of 17 countries that have validated the aircraft. Along with the new validations, Quest is taking a look at its network with plans to realign and add representatives where there are gaps. This primarily will be through new dealerships, but Hill said this could include company representatives in areas where it might be needed.

Along with reinforcing its sales presence in Asia, Setouchi also brings the manufacturing knowledge and background of its parent company Tsuneishi. Quest already is learning new approaches to lean manufacturing and processes where it can maximize its capabilities without having to expand its facilities, he said.

The company is cautiously preparing an expansion of production. Quest delivered 30 Kodiaks last year, the most in any year since the turboprop single entered service in late 2007. The company plans to produce 32 aircraft this year but currently could scale that up to 36. Quest already has discussed potential production increases and scalability with its new owners, he said.

The company also is looking at a second product to add to its product line. Decisions on another aircraft have not been finalized, but Hill, noting the company’s expertise with turboprop aircraft, said the next product would not be a jet. In the meantime, with the new ownership, Quest is planning to continue to roll out product improvements for the Kodiak this year.