Singapore Technologies Engineering Ltd (ST Engineering) has announced that its aerospace arm Singapore Technologies Aerospace Ltd (ST Aerospace), through its wholly owned subsidiary ST Aerospace Engines Pte Ltd (STA Engines) will be injecting its pro rata share of US$20.8m (approximately $25.98m), as additional capital into its Xiamen-based engine MRO joint venture company, ST Aerospace Technologies (Xiamen) Company Limited (STATCO).
The planned additional capital injection is subject to regulatory approvals by the Chinese authorities. Upon injection of the funds, STA Engines’ total share capital contribution in STATCO will stand at US$41.6m (approximately $55.70m). The additional funding will support STATCO’s business growth.
Operating out of the Xiamen Aviation Industry Zone at the Gaoqi International Airport since October 2011, STATCO is an 80:20 joint venture between STA Engines and Xiamen Aviation Industry Co Ltd (XAICO). STATCO provides MRO and total support services for CFM56-7B engines that power the Boeing 737 family of aircraft. The capital injection is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.