ST Engineering said on Monday that it is seeking to develop a 655,000 square foot airframe aircraft maintenance, repair and overhaul (MRO) complex at the Pensacola International Airport in Florida to expand its U.S. MRO business.
The development cost for the complex es estimated at US$210 million, or around S$290 million, with ST Engineering expected to invest around US$35 million, or around S$48 million, while the rest will be funded by the City of Pensacola, Escambia County, Triumph Gulf Coast, the State of Florida and several other state and federal organisations, it said in a filing to SGX before the market open on Monday.
Under a memorandum of understanding signed between the company and the City of Pensacola on Saturday, the project will be developed over four years by ST Engineering and the City of Pensacola, with the design-to-build complex adjacent to the Singapore company’s newly opened 173,500 square foot MRO facility, it said.
The new facility will have three widebody aircraft hangars and an administration building, it said.
ST Engineering currently operates eight bases in the U.S., Asia Pacific and Europe, including U.S. bases in Mobile, Alabama, and San Antonio, Texas, it said.
The company said it was working with local colleges and schools in Northwest Florida to develop an “Airman Academy” to train aviation professionals.
Among Florida officials cited in the press statement, Jeff Bergosh, chairman of the Escambia Board of County Commissioners, said “This US$210 million project could produce an additional 1,325 direct, good-paying full time jobs with benefits as well as 3,400 indirect jobs — which may add more than US$400 million yearly to personal incomes in our county.”