SIA Engineering Company (SIAEC) has signed a 10-year agreement with Safran Aircraft Engines (SAE) to provide engine test services for the CFM LEAP-1A and -1B engines.

In a bourse filing on Dec 4, SIAEC said it will provide the engine test services at its engine test facility, which will be upgraded with the latest data acquisition and control system from Safran Test Cells.

This is an expansion of SIAEC's existing engine maintenance services agreement with SAE to provide engine on-site support, quick turn and boroscope inspection services for the CFM LEAP-1A and -1B engines.

SIAEC said the addition of the engine test capabilities and services will strengthen the scope of maintenance, repair and overhaul (MRO) services that it provides to its original equipment manufacturer (OEM) partners and airline customers.

"The addition of the engine test capabilities for CFM LEAP-1A and -1B engines is a step forward in the growth of our engine MRO services under our Engine Services Division (ESD), which was established earlier this year," said SIAEC chief executive officer Ng Chin Hwee.

"Through ESD, SIAEC is well-poised to increase value to our OEM partners and airline customers, as well as enhance our integration across the engine MRO value chain," he added.

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SAE chief executive officer Jean-Paul Alary said: "We are delighted to support SIAEC in the development of its capabilities for the LEAP engine. It will enhance the expertise that SIAEC is bringing since the LEAP's entry into service in 2016 to better optimise our customer operations while reducing the environmental footprint."

SIAEC said the transaction is not expected to have a material impact on the group's earnings per share or net tangible assets per share for the financial year ending Mar 31, 2022.

Shares of SIAEC closed 2.3 per cent or S$0.05 higher at S$2.23 on Dec 3.