ST Engineering Expands Engine MRO Capacity with New Singapore Facility

ST Engineering’s Engine MRO Capacity Expansion: Strengthening Global Aerospace Support

ST Engineering’s recent expansion of its engine Maintenance, Repair, and Overhaul (MRO) capabilities marks a significant milestone for both the company and the broader aerospace industry. The inauguration of a new engine MRO facility in Singapore on September 15, 2025, officiated by Singapore’s Deputy Prime Minister, signals a strategic move to meet the rising global demand for advanced engine maintenance services. This development is particularly noteworthy as it positions ST Engineering to double its CFM56 and LEAP engine maintenance capacity to over 300 engines annually by 2027, reinforcing Singapore’s status as a leading aviation hub in Asia-Pacific.

The expansion comes at a time when the global aircraft engine MRO market is experiencing robust growth, propelled by increasing air traffic, fleet modernization, and the adoption of new-generation engines. As Airlines and operators seek reliable partners to maintain operational efficiency and safety, ST Engineering’s investment in advanced technologies and workforce development underscores its commitment to delivering high-value, next-generation MRO solutions. This article explores the significance of ST Engineering’s capacity expansion, its strategic context within the global MRO landscape, and the future implications for the aerospace sector.

By integrating automation, AI, and eco-friendly processes, ST Engineering is not only responding to current market needs but also shaping the future of engine maintenance. The expansion’s impact extends beyond operational metrics, influencing regional employment, technological innovation, and Singapore’s competitive positioning in the global aerospace ecosystem.

Background: ST Engineering and the Global MRO Industry

ST Engineering, a Singapore-based global technology, defense, and engineering group, has steadily built its reputation as one of the world’s leading independent airframe and engine MRO providers. With decades of experience, the company has established a comprehensive portfolio that spans commercial aerospace, smart city solutions, and public security. Within the aerospace sector, ST Engineering’s Commercial Aerospace business delivers aircraft design, engineering, original equipment manufacturing, and a full suite of aftermarket maintenance solutions for both commercial and military operators worldwide.

Industry data consistently ranks ST Engineering as the world’s largest independent third-party airframe MRO provider, with an annual capacity exceeding 13 million commercial airframe man-hours. The company’s global workforce of over 8,500 certified engineers and specialists supports a diverse customer base, including major airlines, cargo operators, and defense clients. Its facilities are strategically located across Asia-Pacific, Europe, and North America, enabling a global reach for its nose-to-tail aircraft services.

The aircraft engine MRO segment, in particular, has grown in complexity and significance. Global market projections indicate the aircraft engine MRO market will expand at a compound annual growth rate of over 6%, reaching approximately $49 billion by 2027. This growth is driven by several factors: the increasing number of aircraft in service, the introduction of technologically advanced engines, and the need for specialized maintenance expertise. Asia-Pacific, where ST Engineering is headquartered, is a focal point for this expansion, fueled by rapid economic growth, rising air travel demand, and the proliferation of low-cost carriers.

The Strategic Expansion: Capacity, Technology, and Workforce

The opening of ST Engineering’s expanded engine MRO facility in Singapore represents a multimillion-dollar investment in both physical infrastructure and advanced technology. The new facility, built within the company’s existing aerospace compound, is specifically designed to handle increased volumes of CFM56 and LEAP engine overhauls, two of the most widely used engine families powering modern commercial aircraft.

Technological innovation is at the heart of the expansion. The facility integrates AI-enabled hardware sorters and automated cleaning systems, which streamline the maintenance process, improve precision, and reduce turnaround times. Such Automation not only boosts productivity but also supports predictive maintenance strategies, allowing for early identification of potential issues before they escalate into costly repairs.

From a workforce perspective, the expansion is expected to create over 300 new high-value jobs in Singapore, primarily in specialized technical roles. This aligns with Singapore’s broader strategy to position itself as a hub for high-value manufacturing and technical services, supporting economic diversification and talent development. The new jobs will require advanced training and certification, further enhancing the region’s expertise in next-generation engine technologies.

“This expansion reflects our commitment to staying ahead of industry demand and delivering the highest standards in engine MRO, supporting both airline customers and engine OEMs,” Jeffrey Lam, President of Commercial Aerospace, ST Engineering

With the combined capacity of its Singapore and Xiamen, China facilities, ST Engineering will be able to handle over 400 engine shop visits annually, providing operational flexibility and resilience to serve a global client base.

LEAP Engine MRO: Market Leadership and Strategic Partnerships

ST Engineering’s recognition as the first independent MRO provider in Asia to achieve Premier MRO status in CFM International’s LEAP open MRO ecosystem is a testament to its technical capabilities and market positioning. This exclusive designation allows the company to offer comprehensive LEAP engine services, including engine overhaul, proprietary parts repair, engine pooling, and leasing, critical offerings for operators of new-generation aircraft like the Airbus A320neo and Boeing 737 MAX.

The LEAP engine family, developed by CFM International (a GE Aerospace and Safran joint venture), is renowned for its fuel efficiency and lower carbon emissions. As of 2025, LEAP engines power over 3,300 aircraft globally, with a growing share of the commercial fleet transitioning to these next-generation powerplants. ST Engineering’s early investment in LEAP engine capabilities, including full testing and Performance Restoration Shop Visit (PRSV) services, positions it to capture a significant share of this expanding market.

Recent contract wins underscore the commercial impact of this expertise. In June 2025, ST Engineering secured a five-year contract with Air Cairo for the maintenance of LEAP-1A engines powering its Airbus A320neo fleet. Similarly, a 15-year exclusive agreement with India’s Akasa Air covers LEAP-1B engines for its current and future Boeing 737 MAX aircraft. These long-term partnerships not Previde revenue stability but also demonstrate the trust placed in ST Engineering by fast-growing airlines in key emerging markets.

“We are thrilled to partner with ST Engineering as our MRO solutions provider for the first PRSV service for all our engines. This partnership reinforces our focus on operational efficiency and is a testament to our commitment towards delivering the highest standards of safety and reliability in global aviation,” Daniel Saldanha, VP Maintenance and Engineering, Akasa Air

Market Context and Industry Implications

The global aerospace MRO market is shaped by a confluence of technological, economic, and regulatory trends. As aircraft fleets grow and age, the demand for sophisticated engine maintenance services rises. The Asia-Pacific region, in particular, is leading this growth, with its MRO market projected to rise from $28.3 billion in 2022 to $46.5 billion by 2030. This outpaces global averages and reflects the region’s increasing share of the world’s airline production and fleet expansion.

Engine MRO remains the largest and most critical segment of the aerospace aftermarket, accounting for over 40% of total MRO market value. The complexity and cost of engine maintenance, combined with strict regulatory requirements, create high barriers to entry and favor established players with advanced technical capabilities. Industry consolidation has resulted in a competitive landscape dominated by a handful of global OEMs and independent providers, each leveraging unique strengths in technology, geographic reach, and customer relationships.

Singapore’s strategic role as an aviation hub further enhances ST Engineering’s competitive position. The country’s advanced infrastructure, skilled workforce, and supportive regulatory environment have attracted major OEMs and MRO providers, fostering an ecosystem that supports innovation and operational excellence. ST Engineering’s expansion aligns with national priorities to maintain Singapore’s leadership in aerospace services and high-value manufacturing.

Financial Performance and Strategic Impact

ST Engineering’s financial results reflect the strong underlying demand for its aerospace services and the success of its growth strategy. In 2024, the company reported total revenue of $11.3 billion, with the Commercial Aerospace segment contributing nearly $5 billion, up 16% year-over-year. Profitability also improved, with net profit rising by 20% to $702.3 million and EBITDA increasing to $1.614 billion.

The company’s robust order book, valued at $28.5 billion at the end of 2024, provides visibility and stability for future growth. Long-term Contracts, such as those secured with Akasa Air and Air Cairo, play a key role in underpinning revenue streams and justifying continued investment in capacity and technology. The expansion of engine MRO capabilities is expected to further enhance operational efficiency, generate incremental revenue, and solidify ST Engineering’s market leadership as demand for LEAP engine maintenance accelerates.

Continued momentum is evident in the first half of 2025, with revenue up 7% and net profit increasing by nearly 20%. These results demonstrate the company’s ability to translate strategic investments into tangible financial outcomes, even as the industry navigates supply chain challenges and evolving market dynamics.

Technology, Sustainability, and Future Readiness

Technology integration is a cornerstone of ST Engineering’s MRO strategy. The new facility’s adoption of AI-enabled sorters and automated cleaning not only increases throughput but also supports more consistent quality and predictive maintenance. By leveraging artificial intelligence, the company can analyze engine performance data to optimize maintenance schedules and reduce unplanned downtime, benefiting both customers and operational efficiency.

Sustainability is another focus area. ST Engineering has implemented eco-friendly solutions in engine testing, resulting in measurable fuel savings and reduced emissions. As airlines and regulators prioritize environmental performance, such initiatives enhance the company’s value proposition and align with broader industry trends toward greener aviation.

The evolution of engine technology, particularly the shift from CFM56 to LEAP engines, requires ongoing investment in training, tooling, and process innovation. ST Engineering’s commitment to developing full overhaul and PRSV capabilities for both LEAP-1A and LEAP-1B engines ensures it remains at the forefront of technical expertise as the global fleet transitions to new-generation powerplants.

“The integration of advanced technologies in our engine MRO operations is critical for delivering value to customers and supporting the industry’s transition to more sustainable and efficient maintenance practices,” ST Engineering spokesperson

Conclusion

ST Engineering’s engine MRO capacity expansion is a strategic response to the evolving needs of the global aerospace industry. By doubling its CFM56 and LEAP engine maintenance capacity, integrating advanced automation and AI, and creating high-value jobs, the company is positioning itself for continued leadership in a dynamic and competitive market. The Premier MRO status for LEAP engines, combined with long-term partnerships and a robust order book, provides a strong foundation for future growth and resilience.

Looking ahead, ST Engineering’s focus on technology, sustainability, and workforce development will be key to capturing opportunities as the aviation sector continues to recover and expand. With Asia-Pacific poised for significant growth in air travel and fleet modernization, the company’s investments in capacity and capability are well-timed to meet rising demand and support the next generation of global aviation.

FAQ

Q: What is the significance of ST Engineering’s new engine MRO facility?
A: The facility doubles ST Engineering’s CFM56 and LEAP engine maintenance capacity to over 300 engines annually by 2027, supporting global demand for advanced engine services and reinforcing Singapore’s role as an aviation hub.

Q: What are LEAP engines, and why are they important?
A: LEAP engines are new-generation commercial aircraft engines developed by CFM International, known for improved fuel efficiency and lower emissions. They power modern aircraft like the Airbus A320neo and Boeing 737 MAX, making maintenance expertise for these engines highly valuable.

Q: How does the expansion impact employment in Singapore?
A: The new facility is expected to create over 300 high-value technical jobs, contributing to Singapore’s talent pool and supporting the country’s strategy to be a leading center for high-value manufacturing and aerospace services.

Q: What technologies are being used in the new MRO facility?
A: The facility incorporates AI-enabled hardware sorters, automated cleaning systems, and predictive maintenance tools, enhancing operational efficiency, quality, and turnaround times.

Q: How does ST Engineering’s expansion fit into the broader MRO market?
A: The expansion positions ST Engineering to capture a larger share of the growing global engine MRO market, which is projected to reach $49 billion by 2027, particularly as demand for LEAP engine maintenance increases.

Sources: ST Engineering News Release