ST Engineering Expands Airframe MRO Capacity with New Hangar Facility in Singapore

Singapore, 23 September 2023 – To cater to the rising needs for airframe maintenance, repair and overhaul (MRO) services in the Asia Pacific region¹ , ST Engineering’s Commercial Aerospace business is expanding its capacity in Singapore with a new airframe maintenance facility in Singapore Changi Airport. Groundbreaking for the new facility was held today at its location next to the Changi Airfreight Centre in Changi Creek, in the presence of industry and government partners.

The new airframe facility will be equipped with four hangar bays that can service widebody aircraft, inclusive of a hybrid paint and maintenance bay. The total development cost for the 84,000 sqm facility is estimated at S$170 million, which includes construction and equipment costs. The first hangar bay is expected to be ready in mid-2025, followed by the remaining three by end 2026.

When fully operational, the facility will contribute an additional 1.3 million manhours annually, which is about 10 per cent of ST Engineering’s current global airframe MRO capacity. It will create over 550 jobs including roles such as licensed aircraft engineers, planning and production control specialists, mechanics, warehouse and logistics personnel. ST Engineering’s longstanding customer, Japan Airlines, will be the first airline to induct its aircraft into the new facility for servicing.

Jeffrey Lam, President of Commercial Aerospace at ST Engineering, said, “This is a significant development for us given that the Asia Pacific region is one of the key markets for ST Engineering. With the regional aerospace industry poised to grow strongly in the coming decade, the additional capacity will allow us to better fulfil our commitment to longstanding customers to support their rising maintenance needs, as well as to capture future growth opportunities. This new significant commitment in Singapore also underlines the fact that Singapore continues to be a strategic growth location even as we expand our footprint in other global markets.”

“Singapore’s aerospace industry is well-positioned for growth as global air travel rebounds. EDB is delighted to support ST Engineering, a successful homegrown enterprise, to capture new business opportunities leveraging Singapore’s position as a leading MRO hub in the Asia Pacific region. We look forward to the exciting career opportunities for Singaporeans in this industry with positive long-term prospects,” said Tan Kong Hwee, Executive Vice President at Singapore Economic Development Board (EDB).

As part of ST Engineering’s continuous drive towards environmental sustainability and operational efficiency, the new facility will incorporate green and smart technology features. These include solar panels on its hangar roof to generate solar energy to meet part of its electricity needs, automated guided vehicles to retrieve and transport tools and parts, and digital tools for paperless operations.

With a global footprint across Asia-Pacific, the U.S. and Europe, ST Engineering is the world’s largest third-party airframe MRO service provider with over 13 million manhours capacity and a track record of over 45 years in delivering bespoke airframe maintenance solutions. With the addition of the new facility at Changi Creek, ST Engineering will have four airframe facilities in Singapore, underscoring the Group’s continued confidence and investment in Singapore.

Notes

¹According to industry forecast, fleet growth and MRO demand in the Asia Pacific region is projected to increase at compound annual growth rates of 2.5% and 1.8% respectively over the next ten years . Source: Oliver Wyman’s Global Fleet and MRO Market Forecast 2023-2033.

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