ST Engineering's Aerospace Arm Enters China's Aerospace Logistics Market

ST Engineering, SINGAPORE: Singapore Technologies Engineering Ltd (ST Engineering) today announced that its aerospace arm, Singapore Technologies Aerospace Ltd (ST Aerospace), has set up an import/export and logistics facility in Guangzhou. 
 
Named “Guangzhou Aerospace Technologies & Engineering Company Limited” (GATE), the facility is wholly-owned by ST Aerospace Supplies Pte Ltd and will provide import, export, logistics and other services related to aircraft components and spares in support of ST Aerospace's maintenance and logistics business in China. ST Aerospace Supplies Pte Ltd is a wholly-owned subsidiary of ST Aerospace. 
 
This investment is 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. 
 
GATE will be operated and managed by ST Aerospace as a part of its global network of aviation services companies. Commencing operations immediately, it will support ST Aerospace's customers in China, including customers that it supports on its component Maintenance-By-the-Hour (MBH) programmes. Located in the logistics zone within the Guangzhou Baiyun International Airport, GATE will operate a warehouse and office, occupying a total area of 130sqm (approximately 1399 sq ft). It will have an initial investment of US$500,000 (about S$770,000). 
 
With the set up of GATE in Guangzhou, ST Aerospace will have three complementing business operations in China – Shanghai Technologies Aerospace Company (STARCO), an aircraft maintenance, repair and overhaul (MRO) joint venture with China Eastern Airlines (CEA) in Shanghai, ST Aerospace Technologies (Xiamen) Company (STATCO), an engines MRO and total support services joint venture with Xiamen Aviation Industry Co (XIACO) in Xiamen, and GATE in Guangzhou to provide logistics support. 
 
“Guangzhou is a major aviation hub in China that is strategically located and well connected to other countries as well as other aviation hubs in China. We hope to build GATE into a strong logistics centre for aircraft components maintenance and material support services. GATE will complement our other businesses in China to enable ST Aerospace to serve our customers better,” said Tay Kok Khiang, President, ST Aerospace.  
 
ST Aerospace is the aerospace arm of ST Engineering. Operating a global MRO network with facilities in the Americas, Asia Pacific and Europe, it is the world's largest airframe MRO provider with a global customer base that includes many of the world's leading airlines, airfreight operators and military operators. ST Aerospace has a global staff strength of more than 6,000 engineers and technical specialists. 
 
ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of $4.49b in FY2006. With a market capitalisation of over $11b, it ranks among the largest companies listed on the Singapore Exchange. ST Engineering has more than 18,000 employees worldwide, and over 100 subsidiaries and associated companies in 20 countries and 35 cities.