ST Engineering aerospace segment obtains S$590 million in new contracts in 3Q18

Singapore five-dollar note Photo by Leslie Shaffer

ST Engineering said on Monday that its aerospace segment obtained new contracts of around S$590 million in the third quarter for services including airframe, engine and component maintenance and engine wash.

Some of the contracts secured in the quarter are multi-year agreements, including a four-year ATR72 landing gear overhaul deal from an Asian airline, it said in a filing to SGX after the market close on Monday.

It also obtained a five-year contract extension to maintain the PW4000 thrust reversers and inlets of a European operator’s A300-600 fleet as well as heavy maintenance deals with American freight operators, the filing said.

ST Engineering said its aerospace segment re-delivered 208 aircraft for airframe heavy maintenance and modification work in the quarter, with a total of 11,992 components, 35 landing gears and 45 engines processed, and 2,644 engine washes conducted.

The aerospace segment also expanded its after-market services in nacelle systems by setting up MRO capability for A320s, V2500 and CFM56-5B nacelles, ST Engineering said.

An engine nacelle is the casing that houses an aircraft engine, which provides aerodynamics during flight and thrust reversal capabilities.

ST Engineering said it was currently developing after-market capability in new-generation flight control and nacelle systems used in the Boeing 737MAX and Boeing 777 platforms.

In China, the aerospace segment expanded its airframe maintenance portfolio after the Guangzhou facility obtained Civil Aviation Administration of China’s (CAAC) approval to carry out base maintenance for the Boeing 767 platform, the statement said.

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