ST Engineering's Aerospace Sector Secures New Contracts Worth about S$590m in 3Q2018
Oct. 15, 2018
Singapore, 15 October 2018 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that its Aerospace sector secured new contracts worth about S$590m in the third quarter (3Q) of 2018 for services ranging from airframe, engine and component maintenance to engine wash. New multi-year contractsA number of the contracts secured in 3Q2018 are multi-year agreements, including a 4-year ATR 72 landing gear overhaul agreement from an Asian airline, a 5-year contract extension to maintain the PW4000 thrust reversers and inlets of an European operator’s A300-600 fleet and heavy maintenance agreements from American freight operators. Redeliveries and capabilities development The Aerospace sector redelivered a total of 208 aircraft for airframe heavy maintenance and modification work in 3Q2018. Additionally, a total of 11,992 components, 35 landing gears and 45 engines were processed, while 2,644 engine washes were conducted. The sector continued to expand its aftermarket services in nacelle systems by successfully setting up MRO capabilities for A320’s V2500 and CFM56-5B nacelles. It is currently developing aftermarket capabilities in new-generation flight control and nacelles systems used in aircraft platforms such as Boeing 737MAX and Boeing 777. In China, the sector expanded its airframe maintenance portfolio when its Guangzhou facility obtained approval from the Civil Aviation Administration of China (CAAC) to carry out base maintenance for the Boeing 767 platform. The above developments are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
