ST Engineering's Aerospace Arm Secures New Contracts Worth about S$510m in 1Q2018

Singapore, 11 April 2018 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that its aerospace arm, Singapore Technologies Aerospace Ltd (ST Aerospace) secured new contracts worth about S$510m in the first quarter (1Q) of 2018 for services ranging from heavy maintenance to engine wash.

New contracts

The heavy maintenance contracts ST Aerospace secured were awarded by North American operators to support their Boeing 757 and 767 fleet. ST Aerospace continues to grow its component support for Boeing 787 by getting its first order for the aircraft’s translating sleeve of the thrust reverser. Other contracts include service extensions from a number of customers for its EcoPower® engine wash solution, which has since expanded to include the new LEAP engines.

Redeliveries and capabilities development

The aerospace sector redelivered a total of 1,188 aircraft for airframe maintenance and modification work in 1Q2018. Additionally, a total of 9,311 components, 40 landing gears and 34 engines were processed, while 2,332 engine washes were conducted.

As part of the commitment to continuously expand and improve its service offerings, ST Aerospace set up MRO capabilities for A320 nacelle during the quarter, while one of its airframe maintenance subsidiaries attained the AS9110 certification, an international standard developed by the International Aerospace Quality Group for quality management system. In the US, the sector’s facility in San Antonio received the prestigious Federal Aviation Administration Aviation Maintenance Technician Diamond Award of Excellence in recognition of its training efforts in enhancing the safety, quality, reliability and technical knowledge of its technicians.

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.