SINGAPO T : ST Engineering's Aerospace Arm Partners Marubeni Corporation And Introduces New Engine Leasing Business

ST Engineering's Aerospace Arm Partners Marubeni Corporation And Introduces New Engine Leasing Business

Singapore, 20 June 2011 - ST Engineering's aerospace arm, ST Aerospace, and Marubeni Corporation (Marubeni) today announced that the two organisations have concluded joint venture (JV) discussions to form an engine leasing company in Singapore.  The new JV company, Total Engine Asset Management Pte Ltd (TEAM), will be equally owned (50:50) by ST Aerospace and Marubeni.

Jointly managed by ST Aerospace and Marubeni, TEAM's initial engine leasing portfolio will include the CFM56-3, CFM56-5B and CFM56-7B engines that mainly power narrow-body aircraft such as the Airbus A320 and Boeing 737.  The JV plans to invest approximately US$100m (about S$123.2m) worth of assets within the first two years, with equity injection of up to US$40m (about S$49.3m).   TEAM is expected to commence operations in the second half of 2011.

The new JV will leverage ST Aerospace's expertise in total engine support, including engine technical management and engine Maintenance-By-the-Hour (MBHTM), alongside Marubeni's extensive experience in financing and marketing knowledge, to bring value added solutions to customers worldwide.

"We are very pleased to be inaugurating this new business venture with ST Aerospace who has vast experience and is playing a very important role in MRO business field.  We are confident that we can provide valuable services for our customers and make a considerable success in this field." ~ Kaoru IWASA, Executive Officer & Chief Operating Officer, Transportation Machinery Division, Marubeni Corporation

"TEAM adds a new dimension to the engine total support capabilities already in place within

ST Aerospace.  This new engine leasing business broadens the range of ST Aerospace's aftermarket services.  This significant partnership with Marubeni adds to our list of successful strategic partnerships, and reflects our commitment to create long term value for our customers." ~ CHANG Cheow Teck, President, ST Aerospace

"Marubeni has extensive track record in the investment of engine development programmes and aircraft leasing, as well as in providing sales agency services for commercial aircraft, engines, business jets and various other services including aircraft components, airport ground handling services.  By entering into the aircraft engine leasing business and strengthening our comprehensive range of services to airlines around the world, Marubeni intends to make a further material contribution to the aviation industry." ~ Gentaro TOYA, Senior Operating Officer, Transportation Machinery Division, Marubeni Corporation

"We are delighted to partner Marubeni in this joint venture and leverage their strong financing knowledge. Over the last few years, there has been significant growth in the engine leasing market. We believe that this growth will be further propelled by the increased rate of new aircraft deliveries. This collaboration is our first formal foray into the leasing business, and it now allows us to extend our engine total support expertise to better meet our customers' needs for integrated engine solutions." ~ CHOO Han Khoon, Executive Vice President, Engine Total Support, ST Aerospace

This JV 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.

Marubeni Corporation, headquartered in Tokyo, Japan, is involved in the handling of products and provision of services in a broad range of sectors.  These areas encompass importing and exporting, as well as transactions in the Japanese market, related to food, textiles, materials, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery, and includes offshore trading.  The Company's activities also extend to power projects and infrastructure, plants and industrial machinery, real estate development, plants and industrial machinery, real estate development and construction, and finance, logistics and information industry. www.marubeni.com

ST Aerospace (Singapore Technologies Aerospace Ltd) is the aerospace arm of ST Engineering.   Operating a global MRO network with facilities in the Americas, Asia Pacific and Europe, it is the world's largest aircraft 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 $5.98b in FY2010 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 24 countries and 45 cities.  Please visit www.stengg.com.

Media Contacts:

Sharolyn Choy

SVP, Corporate Communications

ST Engineering

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Belinda Ng

AVP/Head, Corporate Communications

ST Aerospace

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Michimoto Asano

General Manager, Aviation Business, Aerospace Department

Marubeni Corporation

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