Singapore Technologies Engineering Ltd (ST Engineering) announced today that its aerospace arm, Singapore Technologies Aerospace Ltd (ST Aerospace) has set up a wholly-owned subsidiary, ST Aerospace Rotables Pte. Ltd. (STAR), with paid up capital of US$1.5m (approximately S$1.88m). STAR, a global asset services company, will be headquartered in Singapore with marketing offices in the Americas, EMEA and Asia Pacific.
STAR will drive the ST Aerospace's foray into a new growth area, focusing on rotable assets leasing, asset trading, rotables loan and exchange, as well as providing support to the sector's Maintenance-By-the-Hour (MBHTM) programme.
The new set up is in line with ST Aerospace's plan to develop and extend its component total support capability, to address evolving market demands. STAR will manage rotable assets for customers, through expert trading and utilisation via loan and exchange. It will leverage ST Aerospace's brand and expertise to help customers monetise existing assets through its wide range of inventory solutions. Customers would also have access to ST Aerospace's full suite of total aviation support services.
With a network of subsidiaries and associated companies located in strategic hubs around the world, ST Aerospace has a comprehensive maintenance capability for over 25,000 component part numbers with an annual throughput of 85,000 components. It also manages an asset pool of rotables in excess of US$400 million, and is able to deliver flexible and customised component solutions to customers worldwide.
The incorporation of STAR 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.
Source: Singapore Technologies Engineering Ltd (SGX: ST Engg)
Date: Sep 17, 2012