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Launches A320/A321P2F Conversion Programme With Airbus & EFW

Singapore, 17 June 2015 - Singapore Technologies Engineering Ltd (ST Engineering) today announced that its aerospace arm, Singapore Technologies Aerospace Ltd (ST Aerospace) has signed agreements with Airbus Defence and Space GmbH (Airbus) and Elbe Flugzeugwerke GmbH (EFW) for a collaboration to launch the A320/A321 passenger-to-freighter (P2F) conversion programme. This follows a similar collaboration for the A330P2F conversion programme launched in 2013.

Under the agreements, ST Aerospace will lead the A320/A321P2F engineering development, working in tandem with Airbus and EFW, with conversions to be undertaken in EFW and in ST Aerospace's global network of facilities.

Consequent to these agreements, ST Aerospace will be issued new shares in EFW for a total consideration of approximately €99m (approximately S$146.28m), comprising €3m (approximately S$4.43m) in cash at closing and €96m (approximately S$141.85m) in A320/A321P2F engineering development work (Proposed Transaction). This will be funded internally by ST Aerospace.  The total consideration was arrived at, after negotiations between the parties, taking into account engineering work required for the development of the supplemental type certificate (STC) for the A320/A321P2F, the expected future A320/A321P2F work, EFW's past financial performance and future growth prospects.

Following the Proposed Transaction, ST Aerospace's shareholding in EFW will increase from 35% to 55%, with the remaining 45% held by Airbus. The agreements include a call option, which Airbus has over ST Aerospace's shareholding in EFW, during the engineering development phase of the A320/A321P2F conversion programme.  The call options will automatically lapse when the A320/A321P2F STC is successfully delivered to EFW.

Subject to regulatory approvals and customary closing conditions precedent, the transaction is anticipated to close in 4Q2015.

The Proposed Transaction is not expected to have any material impact on the earnings per share of ST Engineering for the current financial year but is expected to reduce its audited consolidated net tangible assets by approximately $0.09 per share from $0.47 per share to $0.38 per share, assuming the Proposed Transaction has been effected at the end of FY2014.

EFW, based in Dresden, Germany, combines various aviation and technology activities under a single roof, including the conversion of passenger aircraft into freighter configuration, maintenance and repair of Airbus aircraft and various engineering services. It is also the exclusive supplier for composite flat sandwich panels to Airbus.  As of today, EFW has converted more than 190 freighter aircraft for 39 customers globally.  Its portfolio also includes the A300-600P2F and A310P2F. EFW had unaudited net tangible assets of €42.1m (approximately S$62.21m), and unaudited net assets of €49.0m (approximately S$72.4m) as at 30 April 2015.

ST Aerospace (Singapore Technologies Aerospace Ltd) is the aerospace arm of ST Engineering with a revenue of $2.07b in FY2014.  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 asset management services, including Total Aviation Support.  ST Aerospace has a global staff strength of around 8,000 employees worldwide.  Please visit

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 revenue of $6.54b in FY2014 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 about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries.  Please visit for more information.

Media Contacts:
Lina Poa
SVP, Corporate Communications
ST Engineering
Tel:      (65) 6722 1883
Mobile: (65) 9696 5453

Belinda Ng
VP, Corporate Communications
ST Aerospace
Tel:      (65) 6380 6176
Mobile: (65) 9683 6361