Reshapes itself with improved cost structure and work processes
Singapore, 7 September 2012 – Singapore Technologies Engineering Ltd’s (ST Engineering) aerospace arm Singapore Technologies Aerospace Ltd (ST Aerospace) today announced that it has embarked on a restructuring programme involving the Scandinavian operations of its wholly owned subsidiary, ST Aerospace Solutions (Europe) A/S. This restructuring is necessary given the continued challenging aviation landscape in Europe marked by weak domestic travel and cargo demand in the region.
Given these market conditions, ST Aerospace needs to take steps to manage its cost structure and work processes in order to maintain its position in the European market.
ST Aerospace Solutions will streamline the utilisation and workflow of its three facilities in Copenhagen, Denmark; Oslo, Norway as well as Stockholm, Sweden. As part of this restructuring exercise, approximately 300 employees across functions could be affected. The exercise will commence immediately, and is expected to be completed by the third quarter of 2013.
As an organisation that values its employees, ST Aerospace Solutions is actively working to help its employees through this transition. Among these actions are dialogues with employees, counselling sessions, and job placement programmes to retrain and equip employees with new skills. It is working closely with trade unions and employee representatives to offer outplacement programmes to affected employees. It will also be fully compliant with relevant Scandinavian labour laws and practices.
ST Aerospace Solutions, a specialist in aircraft component repair, management and logistics services, remains committed to its presence in Europe.
The restructuring 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.
ST Aerospace (Singapore Technologies Aerospace Ltd) is the aerospace arm of ST Engineering. Operating a global MRO network with facilities and affiliates in the Americas, Asia Pacific and Europe, it is the world’s largest commercial airframe MRO provider with a global customer base that includes leading airlines, airfreight and military operators. ST Aerospace is an integrated service provider that offers a spectrum of maintenance and engineering services that include airframe, engine and component maintenance, repair and overhaul; engineering design and technical services; and aviation materials and management services, including Total Aviation Support. ST Aerospace has a global staff strength of more than 8,000 engineers and technical specialists. Please visit www.staero.aero.
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of S$5.99b in FY2011 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, FTSE ASEAN 40 Index, MSCI Singapore and other indices. ST Engineering has more than 22,000 employees worldwide, and over 100 subsidiaries and associated companies in 23 countries and 41 cities. Please visit www.stengg.com.
SVP, Corporate Communications
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AVP / Head, Corporate Communications
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