ST Engineering hiking its overseas presence
Singapore Technologies Engineering is increasing its overseas presence in efforts to become “more global and to increase our competitiveness as a group,” said international marketing vice-president Patrick Choy.
The company’s $95 million acquisition of 67 percent of Scandinavian component and repair company SAS Component in December 2005 is “an indication of where we are going,” he added. “We want to become a global ‘one-stop shop’ for aviation customers.”
The purchase came on top of a $336-million spending spree in the U.S. and Europe during the year, confirming ST Engineering as the region’s biggest aircraft maintenance provider.
Choy cited the recovery of global air traffic, proliferation of regional jets and greater emphasis on cost cutting as the main drivers of ST Engineering’s aerospace business. The company, which earned 51 percent of its pretax profit from aircraft maintenance last year, expects this to grow to around 54 percent during 2006. “We want to keep a balance between our commercial and defence businesses,” said Choy. “But we expect the commercial side will outweigh defence for the time being because of the strong growth.”