SIA Engineering inks 10-year maintenance deal with Rolls-Royce

Annabeth Leow

Published Tue, Jan 18, 2022 · 06:26 PM

MAINBOARD-LISTED SIA Engineering Co (SIAEC) S59 : S59 0% has signed a 10-year line maintenance and in-field service agreement with Rolls-Royce, the aircraft maintenance, repair and overhaul service provider said in a bourse filing on Tuesday (Jan 17).

The deal is not expected to have a material impact on the group's earnings per share or net tangible assets per share for the year to Mar 31, 2022.

Under the new agreement, SIAEC will provide in-field services for Rolls-Royce customers in Singapore, such as its parent company Singapore Airlines. It extends an ongoing on-wing care services arrangement with Rolls-Royce, and will include new capabilities for the Trent 7000 and Trent XWB engines.

"These new capabilities will strengthen the scope of SIAEC's engine services in support of its original equipment manufacturer partners and airline customers," SIAEC said in its statement.

Chief executive Ng Chin Hwee added that the transaction marks continued growth in engine maintenance, repair and overhaul services within the newly launched engine services division that was announced by SIAEC in February 2021.

SIAEC closed on Tuesday at S$2.18, down by S$0.02 or 0.9 per cent, before the news.