ST Aero Breaks Ground For Xiamen Engine MRO

By Bradley Perrett

Singapore Technologies Aerospace and partner Xiamen Aviation Industry Co. have broken ground on an engine shop that will join in the increasingly fierce competition to overhaul CFM56 turbofans in the country.

The new business, to be known as Statco, will initially support CFM56-5B and CFM56-7B engines for the Airbus A320 family and the current series of Boeing 737s, says ST Aero.

Capacity, previously undisclosed, will be 300 engines a year, the Singaporean company says. The $78 million plant will have test cell rated at 90,000 lbs. thrust, enough for all but the largest 777 engines.

The Statco facility is being built on 28,500 sq. meters (307,000 sq. ft.) at the southeastern coastal city Xiamen. It is due to begin operations around mid-2010.

Among four Chinese CFM56 shops that are being built or have proposed expansions, Statco is the only one without a major local airline as a partner and anchor customer. But ST Aero says its operations in China are basically aimed at meeting global demand, supporting foreign airlines.

The Singaporean company holds an 80% share in Statco and will operate and manage the plant, which is intended to complement its home-base engine overhaul operation, ST Aerospace Engines.

By breaking ground now, ST Aero is pushing ahead with the investment with almost no delay, a seemingly brave move amid the global recession. But company president Tay Kok Khiang told The DAILY in October that he would not slow down ST Aero's expansion, even maintaining its usual intake of trainees for 2009.

Photo credit: CFM International