ST Engineering’s aerospace arm completes additional investment in EFW

Dino D'Amore
By Dino D'Amore February 1, 2016 22:31

ST Engineering’s aerospace arm completes additional investment in EFW

Singapore Technologies Engineering’s (ST Engineering) aerospace arm Singapore Technologies Aerospace Ltd (ST Aerospace) has completed its investment of the additional 20% equity interest in Elbe Flugzeugwerke (EFW).

The investment was completed following the receipt of regulatory approvals and fulfilment of customary conditions precedent. Following this completion, EFW becomes a subsidiary of ST Aerospace, with the latter owning 55% of the shareholding and Airbus Defence and Space GmbH (Airbus) holding the remaining 45%.

The additional investment saw the launch of the collaboration in June 2015, between
Airbus, EFW and ST Aerospace for the A320/A321P2F passenger-to-freighter (P2F) conversion programmes. This follows a similar collaboration for the A330P2F conversion programmes launched in 2013.

EFW, based in Dresden, Germany, has a current staff strength of over 1,000 and annual revenues of over €200m. Apart from being the exclusive supplier for composite flat panels to Airbus for all Airbus aircraft, the company will serve as ST Aerospace’s centre for passenger-to-freighter conversions, aircraft maintenance, repair and overhaul (MRO), as well as engineering services in Europe, leveraging ST Aerospace’s global network, track record and expertise in aircraft MRO and engineering.

The investment 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.

Dino D'Amore
By Dino D'Amore February 1, 2016 22:31