SIA Engineering Company signs Maintenance Services Agreement with Safran Aircraft Engines for CFM LEAP-1A and -1B Engines

SINGAPORE, 13 DECEMBER 2019 - Mainboard-listed SIA Engineering Company Limited (“SIAEC”) and Safran Aircraft Engines have signed an agreement today for SIAEC to provide engine maintenance services to Safran Aircraft Engines. The 10-year agreement encompasses engine Quick Turn (QT) and modification embodiment services for both CFM LEAP-1A and LEAP-1B engines. SIAEC will set up a dedicated facility with the latest engine and QT processes and state-of-the-art technology to support these services. The facility is expected to commence operations in 2020.

The LEAP-1A is one of two engine options for the Airbus A320neo family, while the LEAP-1B is the exclusive powerplant for the Boeing 737 MAX. The LEAP engine is a product of CFM International, a 50/50 joint company between GE (United States) and Safran Aircraft Engines (France). This engine has experienced the fastest order ramp up in commercial aviation history and CFM has received orders and commitments for a total of more than 18,750 LEAP engines to date.

Mr Png Kim Chiang, Chief Executive Officer of SIAEC, said: “This agreement is a strong affirmation of SIAEC’s technical capabilities and our good working relationship with Safran Aircraft Engines since this partnership began more than three years ago. We look forward to expanding our activities with Safran Aircraft Engines on LEAP-1A and LEAP-1B quick turns and bringing the latest technology and processes to enhance our engine maintenance capabilities.”

“We are pleased to strengthen the relationship with SIAEC in the LEAP MRO network,” said Mr Olivier Andriès, Chief Executive Officer of Safran Aircraft Engines. “Through this agreement and the extension of their maintenance capabilities, SIAEC contributes to the maintenance, repair and overhaul ramp-up of the LEAP engine.”

The transaction is not expected to have a material impact on the earnings per share or the net tangible assets per share of SIAEC for the financial year ending 31 March 2020. None of the Directors of SIAEC has any interest, direct or indirect, in the transaction.