September 9, 2014
ST Engineering’s Aerospace arm injects capital into Xiamen Engine MRO joint venture
ST Aerospace, through its wholly owned subsidiary ST Aerospace Engines, will be injecting its pro rata share of US$20.8m (approximately $25.98m), as additional capital into its Xiamen-based engine MRO joint venture company, ST Aerospace Technologies (Xiamen) Company (STATCO). The planned additional capital injection is subject to regulatory approvals by the Chinese authorities. Upon injection of the funds, STA Engines’ total share capital contribution in STATCO will stand at US$41.6m (approximately $55.70m). The additional funding will support STATCO’s business growth. Operating out of the Xiamen Aviation Industry Zone at the Gaoqi International Airport since October 2011, STATCO is an 80:20 joint venture between STA Engines and Xiamen Aviation Industry Co (XAICO). STATCO provides MRO and total support services for CFM56-7B engines that power the Boeing 737 family of aircraft. The capital injection 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.