SAESL announces US$180 million expansion with EDB and JTC Corporation support

Singapore Aero Engine Services (SAESL) announced a US$180 million (S$242.26 million) expansion plan at the Singapore Airshow on Wednesday (21 Feb).

The aircraft maintenance, repair and overhaul (MRO) company signed two memorandums of understanding (MOUs) with the Singapore Economic Development Board (EDB) and JTC Corporation to support this expansion.

SAESL is a joint venture between SIA Engineering and aircraft engine manufacturer Rolls-Royce. It focuses on aircraft engine maintenance, particularly the Rolls-Royce Trent family of engines, which are widely used in commercial aviation.

Simon Middlebrough, Chief Executive of SAESL, said that the expansion will focus on increasing the company’s capabilities and capacity in the aviation MRO space.

The investment will increase SAESL’s capacity by 40 per cent in the areas of engine overhaul and component repair.

To support this, the company will add new facilities with a total footprint of more than 50,000 square metres.

This involves the development of a new 26,000 sq m facility at JTC’s Loyang estate and expansion into Rolls-Royce’s existing premises at Seletar Aerospace Park.

SAESL’s current facilities at Calshot Road and Loyang Road will also undergo “major transformation” and be reconfigured to match the expected increase in capacity.

The company will also set up an advanced technology unit, called the Advanced Repair Cell, which will utilise automation and the wider-scale adoption of advanced technology, such as adaptive machining, additive manufacturing, and 3D scanning.

According to the company, 500 new employment opportunities in engineering will be created, which will need to be filled by 2028 to support its expansion.

To help meet that demand, SAESL will sign another MOU on February 22 with the Employment and Employability Institute and NTUC Learning Hub for various initiatives to promote these roles, such as skill improvement and facilitating career advancement for individuals looking to become aerospace engineers.

SAESL said that with aviation’s post-pandemic rebound, the demand for MRO is expected to grow significantly in the coming years. Aviation consultancy Alton Aviation forecasts demand will expand to US$138 billion (S$185.72 billion) in 2033 from US$112 billion (S$150.73 billion) in 2023.

SAESL said that the Asia-Pacific region will account for one-third of total MRO demand in 2024.
 

Source: The Business Times ©️ SPH Media Limited. Permission required for reproduction.