Andrew Doyle/SINGAPORE
Singapore Technologies Aerospace (ST Aero) is studying potential acquisition targets in the USA, Europe and Asia as it looks to add workshop capacity as part of its long-term expansion strategy. The company is also continuing talks with Airbus over taking a role in the A380 programme.
Acting ST Aero president Tay Kok Khiang says the maintenance and modification specialist is "actively looking for acquisitions", having grown "incrementally" over the last two years by expanding its overhaul sites.
"Essentially from the airframe point of view we have been limited more by capacity than by work," says Tay. "If we find the right site we may be prepared to consider acquiring it."
ST Aero is a partner with Boeing on the recently-launched 757 passenger-to-freighter conversion programme, and its ST Aviation Services (SASCO) unit has a contract to convert 17 aircraft on behalf of DHL. The company has also started converting 13 MD-11s for United Parcel Service under contract to Boeing, and carries out a wide range of aircraft, engine and component overhaul work in the commercial and military sectors.
Around 40% of ST Aero's employees already work in the USA at subsidiaries in Mobile, Alabama, and Dallas, Texas.
"We have been looking at various sites in the US. If something like Aviation Sales comes on the table we will probably have no problem looking at it, but whether we buy it or not is a separate matter," says Tay.
Aviation Sales, the second largest maintenance and modification provider in the USA, maybe put up for sale in the next few months after being restructured (Flight International, 15-21 May).
Tay says ST Aero is in talks with Boeing on participation in the US manufacturer's planned 747-400 conversion programme, and will be building up an Airbus A330/A340 heavy maintenance capability "in the coming year".
The company is also talking to Airbus about taking a role in the production and development of the A380. A decision is expected "probably over the next six months or so", says Tay.
ST Aero has been divided into three divisions - maintenance and modification, component/engine repair and overhaul, and engineering and materials services - in place of its previous military and commercial groups. Pre-tax profit for 2000 increased 15% to S$151 million ($84 million), on turnover of S$959 million.
Source: Flight International
