ST Engineering says positioned for aviation recovery, to showcase capabilities at airshow

MAINBOARD-LISTED ST Engineering is positioned to capture the recovery in the aviation sector that is expected in 2023 to 2024 as it expands its capabilities in maintenance, replacement and overhaul (MRO), aircraft components and passenger-to-freighter conversions.

The group will flex its muscles at the upcoming Singapore Airshow 2022, giving trade visitors a better understanding of its aviation solutions ranging from design to MRO to asset management.

It is the show's largest exhibitor, with almost 100 exhibits organised around the 3 clusters of aviation, defence and smart city at the biennial aviation event that will take place from Tuesday (Feb 15) to Friday.

Head of strategy & defence systems office at ST Engineering, Percival Goh, said at a media briefing on Sunday: "We intend to expand our MRO capabilities, strengthen our OEM (original equipment manufacturer) positions in the aircraft components, we are going to scale our aviation asset management ... we want to capture strong demand in the passenger-to-freighter conversions."

ST Engineering's wholly-owned aviation asset management unit is in a 50-50 joint venture (JV) for freighter aircraft leasing with state investor Temasek, with targets to build a US$600 million portfolio value within 5 years, investing in passenger aircraft to be converted into highly efficient freighters.

ST Engineering on Sunday stated that it is going to expand up to 25 freighters under this JV, which aims to address the growing demand for freighter aircraft amid booming e-commerce and air cargo volumes.

Among the aviation solutions it will showcase at the Airshow is additive manufacturing solutions, which include 3D printer parts such as armrest and seat belt holder for passenger aircraft. This will allow vendors to enjoy the benefits of just-in-time workflow despite not having to hold inventory.

ST Engineering also announced it has formed a consortium with Sumitomo Corporation and Skyports to provide unmanned aircraft for shore-to-ship urgent parcel delivery in Singapore. The aim is to establish a delivery network for carrying parcels of up to 7 kg per load during the 9-month pilot programme, which could possibly be the first trial that charges shipping companies for the service.

The engineering powerhouse estimates currently there are 10-20 per cent of logistic traffic that requires fast, flexible and urgent shore-to-ship deliveries.

ST Engineering will provide the unmanned aircraft technology while Skyports will jointly conduct the Beyond Visual Line of Sight flight operations with ST Engineering; while Sumitomo Corporation, with its own fleet of vessels, will provide go-to-market support.

Shares of ST Engineering rose by 1 Singapore cent to close at S$3.86 last Friday.