ST Engineering Announces Capacity Transition Plan for its U.S. Airframe MRO Operations

The strategic decision aims to enhance the Group’s competitiveness in the global aviation market 

Singapore, 6 March 2025 – Singapore Technologies Engineering Ltd (ST Engineering) today announced a decision by its Commercial Aerospace business to undertake a capacity transition plan for its airframe Maintenance, Repair and Overhaul (MRO) operations. This strategic initiative is part of a continuous effort to optimise its Commercial Aerospace facility network and enhance its competitiveness in the global airframe MRO market.

Under the initiative, ST Engineering will progressively rationalise the operations of its subsidiary, VT Mobile Aerospace Engineering, Inc. (VT MAE) in Mobile, Alabama and consolidate the U.S. airframe MRO activities of its Commercial Aerospace business within the rest of its existing U.S. network in Pensacola, Florida and San Antonio, Texas. As part of the process, the business will work with the local communities including the state, city, landlord and industry partners for a smooth transition. 

Jeffrey Lam, President Commercial Aerospace at ST Engineering, said, “This strategic move is part of our continuous network optimisation effort to streamline our operations while adding newer and more modern facilities under ongoing expansion plans. With a more optimised network, we can enhance the competitiveness of our airframe MRO business.”

The transition is estimated to take place progressively over the next few months. ST Engineering’s Commercial Aerospace business will work closely with its customers at the Mobile facility to ensure seamless service continuity at other facilities in its U.S. network. The business will also provide comprehensive support to its Mobile employees, including redeployment opportunities at its other U.S. facilities, as well as outplacement and transition assistance.

As part of its growth strategy, ST Engineering’s Commercial Aerospace business maintains a steadfast focus on investing in its global aerospace network, including in the U.S. where it is developing an airframe MRO complex in Pensacola. A third hangar with two widebody aircraft bays is currently being built at this Pensacola complex, which will comprise four hangar facilities when fully completed. Other ongoing expansion projects across its global network will gradually come online starting 2025. The expanded capacity, combined with this capacity transition effort, will strengthen the Group’s ability to continue scaling and growing its Commercial Aerospace business.

This development 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.

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