ST Engineering inks maintenance agreement with CFM International

The aerospace arm of ST Engineering on Wednesday signed an agreement with CFM International to provide maintenance, repair and overhaul (MRO) support for its LEAP-1B engine.

CFM is a joint company between GE and Safran Aircraft Engines, a French manufacturer of aircraft and rocket engines.

Under the agreement, ST Engineering will have the rights to use technical data to perform MRO work on the LEAP-1B engine, which is the exclusive engine for the Boeing 737 MAX.

The new agreement builds on ST Engineering's long-standing relationship with CFM as a licensed service centre for its CFM56-5B and CFM56-7B engines, and expands ST Engineering's suite of MRO offerings in CFM engines.

ST Engineering estimates that its MRO infrastructure and capabilities for LEAP-1B engines will be ready by the end of 2020 and will be set up at its aerospace facility in Singapore.

ST Engineering shares were trading at S$4.24 as at 3.51pm on Wednesday, up four Singapore cents or 0.95 per cent.