Despite the regional economic difficulties, Singapore Technologies (ST) still returned a good performance last year. At Asian Aerospace 2000, the company's focus is firmly on engineering. It has some great new products, and ambitious plans. Singapore Technologies Engineering chief operating officer Tan Pheng Hock reveals all.
Q. The regional economic picture is very different from that of two years ago: what is your analysis of that?
A. The change was fast. It started with Thailand and their decision to restructure: Malaysia had its own unique solutions. Singapore will always be affected [by economic down-turns] because its economy has a very external basis.
But the recession of the 1980s meant we were better prepared this time. There was an impact on Singapore Technologies Engineering in some areas; however, not in aerospace where we have a strong international clientele, particularly in the United States where the economy has been doing fine.
Q. What is the theme of your presence at Asian Aerospace 2000?
A. One important theme is that "we take engineering further." We want people to know that we have a lot of basic engineering knowledge and can do every-thing from design and development work to upgrades. We don't actually build aircraft but we do most other things.
In aerospace, we offer a one-stop shop covering everything from airframes to engines. We have a twinning concept that means our airline clients can have work done in Singapore or at our base in the United States. This flexible approach saves the airline money because they can avoid costly re-routing.
Q. Are you looking to extend that approach by creating maintenance facilities elsewhere in the world?
A. In Europe, we are looking at the possibility of an airframe facility covering narrowbody aircraft, although widebody aircraft as well would be even better. One of the issues we are aware of is that of the unions and, of course, we need an airline to give us the baseload of work.
Our message here is that people should look at our operations in the United States where we have created a lot of new jobs. A base in Europe would give us even more flexibility. We are also interested in China but we are aware that you have to understand the picture, such as regulatory issues, and that can be complex. Finding the right partner is a challenge and then understanding the processes and systems at regional and state level is another.
Q. How does this year's Singapore Technologies exhibit compare with that of 1998?
A. Two years ago we had a Singapore Technologies pavilion. This time it is a Singapore Technologies Engineering pavilion and we are featuring five main areas: aerospace, land systems, electronics, marine and advanced engineering. Advanced engineering covers things like unmanned platforms and smart weapons. In the areas of smart weapons, we are looking for strategic partners.
Q. What new products are you showing at this year's show?
A. We are unveiling the All Terrain Tracked Carrier. It has a payload of up to five tonnes which makes it very flexible and we believe it has great market potential. It is also the first show where we are showing off our [Lockheed Martin F-16A] Falcon One upgrade. We are showing off the glass cockpit design that provides total situation awareness.
We have also developed a 3D sound effect so that the pilot gets a warning from the direction where the threat is coming from. We believe there is good market potential from all F-16 operators except the United States.
Q. How is your Northrop Grumman F-5 upgrade market campaign going?
A. We are working on the Turkish air force fleet of 48 and that is on track. Negotiations continue with the Brazilian air force for work on their F-5s. Negotiations are going well but we are realistic and we know it will take some time.
Q. How significant was the recently-won contract with Boeing Airplane Services to convert Boeing 757-200 aircraft to freighters?
A. It was important because instead of just carrying out the work as we have done before, we are doing the design. This is value-added work and opens up the prospect of winning further work in a market where there are some 200 aircraft.
Q. Regional ambitions, particularly in China and Indonesia, to build a civil aircraft manufacturing base have suffered setbacks in recent years. Do you think this dream will be realised?
A. I always think they might. I believe that China will eventually build its own aircraft; maybe not a Boeing 747 equivalent but maybe a 150-seater.
That's not too far-fetched. What has happened is that it has become very clear just how difficult such a programme is.
Source: Flight Daily News
