ST Aerospace Secures New Contracts in 3Q2012

ST Aerospace has secured new contracts worth about S$590m in the third quarter of 2012. This total contract value is in addition to the component repair management Maintenance-By-the-Hour (MBH) contract worth about US$80m (approximately S$102m) awarded by AirAsia in July this year.

The contracts are for airframe, component and engine maintenance and engineering design support, which will be carried out through its global network.

During the quarter, ST Aerospace redelivered its first VIP Boeing Business Jet, a contract secured for B level check and interior modifications. Additionally, it completed airframe maintenance and modification work for 156 aircraft.

For passenger-to-freighter conversions, it redelivered three converted Boeing 757-200 freighters to FedEx Express. Besides airframe redeliveries, ST Aerospace processed 11,861 components, 67 landing gears and 68 engines for both commercial and military customers.

On capability development, ST Aerospace incorporated a new global asset services company ST Aerospace Rotables, to drive the sector’s foray into a new growth area that focuses on leasing and trading of rotable assets, as well as the loan and exchange of rotables. A complementary extension to its Component Total Support business, the new company will support its global MBH program.

Additionally, its Singapore component repair and overhaul facility added capabilities for the Airbus A320, A330, A340 and Boeing 777 platforms, to better support its customers in the region.

In the quarter, ST Aerospace’s affiliate STA San Antonio received certification from the National Civil Aviation Agency of Brazil for its airframe facility, adding to the stable of international certifications it has obtained over the past ten years.

In Guangzhou, China, it broke ground to commence hangar construction for its airframe maintenance, repair and overhaul joint venture. Expected to begin operations in the third quarter of 2013, the new facility will initially offer line and heavy maintenance services, while leveraging ST Aerospace’s network to provide on-wing engine services and EcoPower engine wash services to its customers.

On ST Aerospace’s planned joint control of Elbe Flugzeugwerke GmbH (EADS EFW) with EADS, the joint partnership has so far received merger control approvals from the Brazilian Antitrust Tribunal, the European Commission and the Turkish Competition Authority respectively. Other regulatory approvals are still outstanding.

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