SINGAPORE (Jan 15): ST Engineering announced that its aerospace arm has secured about $450 million worth of new contracts in 4Q18 for services including maintenance and modification for wide-ranging aircraft parts from the airframe to components.

This bring the total worth of new contracts secured in FY18 to $2.06 billion.

During the quarter, a number of new contracts secured were for airframe heavy maintenance checks to service both commercial aircraft and private jets.

These include a contract from a major North American airline to carry out heavy maintenance services to their A321s, as well as a contract for an in-seat power supply, overhead bin and galley modification programme for the airline’s entire suite of 48 A320s.

Multi-year contracts won in 4Q18 include a five-year component maintenance-by-the-hour contract extension to support an Asian airline’s entire fleet of B737NG/MAX aircraft.

Furthermore, ST Aerospace redelivered a total of 213 aircraft for airframe heavy maintenance and modification work in 4Q18. Also, a total of 11,212 components, 50 landing gears and 41 engines were processed, while 2,515 engine washes were conducted.

In China, the sector expanded its airframe maintenance portfolio when its Guangzhou facility obtained approval from the Civil Aviation Authority of Malaysia to carry out base maintenance for the A320neo platform.

In a media release issued on Tuesday, the group says that the above developments are not expected to have any material impact on the consolidated net tangible assets per share and earnings for the current financial year.

Shares in ST Engineering closed 3 cents higher at $3.61 on Tuesday.