ST Aerospace Clinches $520M Worth of Contracts in 2Q2014

Singapore, 14 July 2014 – ST Aerospace today announced that it has secured new contracts worth $520m in the second quarter (2Q) of 2014. These new orders span the aerospace sector repertoire of capabilities covering airframe, component and engine maintenance, freighter conversion, cabin modification, engine wash and pilot training.

Included in the 2Q2014 contracts is a five-year agreement with a regional US airline for heavy maintenance of 42 Embraer E-170 and E-175 aircraft at the aerospace sector’s San Antonio facility. This came shortly after clinching a two-year agreement in 1Q2014 for heavy maintenance of 20 Embraer E-190 aircraft.

In 2Q2014, ST Aerospace redelivered a total of 229 aircraft for airframe maintenance and modification work. In addition to airframe redeliveries, a total of 11,191 components, 56 landing gears and 49 engines were processed, while 2,505 engine washes were conducted for both commercial and military customers.

The second quarter’s aircraft redeliveries included four additional Boeing 767-300 aircraft to Air Canada rouge, after a full turnkey cabin reconfiguration programme. This follows the completion of the first two aircraft in 1Q2014.

On aircraft capability, ST Aerospace’s airframe facility in Guangzhou has received Part 145 certifications from the Civil Aviation Administration of China, the European Aviation Safety Agency and the US Federal Aviation Administration (FAA) respectively, allowing it to extend maintenance services to aircraft operators from these regions.

On component capability development, ST Aerospace is setting up new repair and overhaul capabilities in Singapore, for the first batch of UTC Aerospace Systems’ electrical and air management system components installed on the Boeing 787 Dreamliner aircraft. Concurrently, the aerospace sector’s Scandinavian facility has added new component capabilities for the Boeing 737NG, 767 and Airbus A330 aircraft.

Leveraging new technologies, ST Aerospace’s investment casting foundry started using 3D printing for rapid prototyping and small scale production of parts.

In the US, VT Aerospace has acquired 100% equity interest in Aviation Academy of America, a FAA Part 141-approved flight school, to grow the aerospace sector’s pilot training business. In Singapore, ST Aerospace’s training academy was awarded an extension contract to train another 40 cadet pilots for Juneyao Airlines.

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.

ST Aerospace (Singapore Technologies Aerospace Ltd) is the aerospace arm of ST Engineering with a turnover of $2.08b in FY2013. Operating a global MRO network with facilities and affiliates in the Americas, Asia Pacific and Europe, it is the world’s largest commercial airframe MRO provider with a global customer base that includes leading airlines, airfreight and military operators. ST Aerospace is an integrated service provider that offers a spectrum of maintenance and engineering services that include airframe, engine and component maintenance, repair and overhaul; engineering design and technical services; and aviation materials and asset management services, including Total Aviation Support. ST Aerospace has a global staff strength of around 8,000 employees worldwide. Please visit www.staero.aero.

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