ST Engineering announced yesterday that its aerospace arm secured new contracts worth $450 million in the fourth quarter of last year for services, including maintenance and modification for a wide range of aircraft parts from the airframe to components.
This brings the total value of the contracts to $2.06 billion for last year.
A number of new contracts secured in the quarter are for airframe heavy maintenance checks to service both commercial aircraft and private jets. These include a contract from a major North American airline to carry out heavy maintenance services for its A321s for the first time. The same airline also awarded a contract for an in-seat power supply, overhead bin and galley modification programme for its entire fleet of 48 A320s.
Multi-year contracts won in the fourth quarter of last year include a five-year component maintenance-by-the-hour contract extension to support an Asian airline's entire fleet of B737NG/MAX aircraft.
Sembcorp Marine's subsidiaries Sembcorp Marine Repairs and Upgrades, and Semb-Eco yesterday entered into a share swap agreement with Ecospec Global Technology and their shareholders Chee Hwee Hong and Neonlite Investments.
Some 10 million shares representing 20 per cent of the issued share capital of Ecospec Global Technology will be exchanged for 23.8 million shares representing 45 per cent of the issued share capital of Semb-Eco.
Ecospec Global Technology is a joint venture between Neonlite Investments (holding 75 per cent of its issued capital), Mr Chew (5 per cent) and Sembcorp Marine Repairs and Upgrades (20 per cent). Its principal activities are the research and experimental development of environmental and clean technologies.
Semb-Eco is a joint venture between Neonlite Investments (holding 30 per cent of Semb-Eco's issued share capital), Mr Chew (15 per cent) and Sembcorp Marine Repairs and Upgrades (55 per cent). The principal activity of Semb-Eco is investment holding.
Sembcorp Marine Repairs and Upgrades will also acquire five groups of Semb-Eco core patents, which are applied in the development of offshore and marine solutions.
Following the deal, Semb-Eco, Semb-Eco Technology and Semb-Eco R&D will become wholly owned Sembcorp Marine subsidiaries, while Ecospec Global Technology will cease to be an associated company of the group.