SINGAPORE (Feb 10): ST Engineering’s aerospace arm has secured a three-year airframe heavy maintenance contract from a major North American airline, the conglomerate announced Monday.

The value of the contract was not disclosed.

Under the agreement, ST Engineering will provide heavy maintenance support on the airline’s fleet of Airbus A320 family aircraft – comprising A319, A320, and A321neo – at the group’s facilities in San Antonio, Texas, US.

The first aircraft was inducted and redelivered in January 2020.

ST Engineering has about 1,200 employees at its facility in San Antonio. The 700,000 sq ft of hangar space can accommodate eight widebody and seven narrowbody aircraft at San Antonio International Airport.

In anticipation of the strong and growing demand, ST Engineering is boosting its capacity to serve the North America region and its global customer base by expanding its existing airframe MRO facility in Pensacola.

Construction work for the expansion is targeted to commence this year. When completed, it is expected to boost the total annual capacity at the Pensacola facility to 2.1 million labour hours.

According to industry reports, demand for airframe heavy maintenance is expected to be led by North America and Western Europe in the next few years.

As at 1.43pm, share in ST Engineering are trading 5 cents higher, or up 1.2%, at $4.16.