Singapore Technologies Engineering has celebrated a hugely successful 2019 for its aerospace business, which saw full-year orders more than double.
Its aerospace activities, which include manufacturing and MRO services, secured about S$1.1 billion ($850 million) of new contracts in the fourth quarter, bringing total orders for 2019 up to S$4.2 billion, from S$2.1 billion in 2018.
New MRO contracts included a heavy maintenance deal for the Boeing 757s of a U.S. airline from the second half of 2020.
This work might be performed at ST Engineering’s Pensacola, Florida facility, a 173,500-sq.-ft. facility that cost US$46 million and was opened in 2018 with launch customer UPS. About 40 of UPS’ 757 freighters cycle through the facility each year
In early 2019 the company said it had signed a US$600 million deal to provide aircraft heavy maintenance services to a “major North American operator” on a fleet of more than 160 widebody and narrowbody aircraft starting in 2020 for a period of 10 years. That work will be performed from Pensacola at ST’s other U.S. hangar in San Antonio, Texas.
Other MRO contracts included transition checks for a freight operator’s MD-11s and landing gear overhaul service for Japanese carrier Solaseed Air’s 737-800 fleet over a four-year period.
ST Engineering also signed several cost-per-flight-hour maintenance deals, including most recently a 15-year programme to support Japan Transocean Air’s Boeing 737NG fleet.
Business is obviously booming for Asia’s biggest MRO provider. To put its results in context, the global MRO leader, Lufthansa Technik, reported €5 billion (S$7.6 billion) of new contract volume in 2018, the last full year for which its results are currently available.
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