ST Aerospace gets green light for aircraft repair facility in China

ST Engineering’s aerospace arm has received the business licence from the Administration of Industry and Commerce of the Guangzhou Municipality to establish its aircraft repair facility in the region.

This follows an announcement made on 20 July 2010 that ST Aerospace had concluded joint venture discussions to set up a commercial aircraft heavy maintenance facility in Guangzhou.

ST Aerospace (Guangzhou) Aviation Services Company Limited is a joint venture (JV) between Guangdong Airport Management Corporation (51%) and ST Aerospace (49%), the aerospace arm of ST Engineering. It has already received endorsement from the Civil Aviation Administration of China and approval from the Ministry of Commerce respectively.

ST Aerospace (Guangzhou) Aviation Services Company Limited will have a total paid up capital of US$99m.

The JV company will be an associated company of ST Aerospace and will be operated and managed as a part of ST Aerospace's global network of maintenance, repair and overhaul (MRO) facilities. Expected to begin operations in the second half of 2013, it will perform commercial aircraft MRO for Airbus, Boeing and McDonnell Douglas aircraft.

The 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.