ST : JTC to build 7 factories at Seletar

Feb 5, 2010

JTC to build 7 factories at Seletar

$30m project will boost aerospace sector and back Rolls-Royce unit

By Karamjit Kaur, Aviation Correspondent

SEVEN new factories, each up to 3,000 sq m in size, will come up at Seletar Aerospace Park next year, near the future Rolls-Royce facility.

The $30 million project by JTC Corp is partly to support the British power systems and engines giant, which will assemble and test engines, as well as make fan blades for large aircraft, at the site.

Getting big boys like Rolls-Royce in is a good way to grow the local aerospace sector as they can play 'queen bee', attracting other supporting suppliers and firms to set up shop here, said JTC and the Economic Development Board (EDB) at a joint industry briefing yesterday.

EDB director of transport engineering Sia Kheng Yok said: 'There are many discussions now on with local and overseas companies about supply opportunities.'

Growing the manufacturing arm of the aerospace industry is a key priority for Singapore, which currently does more work in aircraft maintenance, repair and overhaul (MRO). This segment accounted for about 90 per cent of the industry's total output last year, which hit just over $7 billion - about the level seen in 2008.

Despite the business downturn, which took its toll on airlines and other aviation firms last year, Singapore's aerospace industry has demonstrated its resilience in the face of hardship, said Mr Sia at the briefing, held at the Singapore Airshow.

The future looks good, he said, noting that signs suggest business is picking up.

As an example, he named Singapore Airlines. The carrier announced earlier this week that it had made a profit of $404 million over the three months ended December last year, reversing two previous quarters of losses.

As Singapore continues to work towards expanding its aerospace sector, manpower development and training will be another key focus, Mr Sia said.

The Republic's various universities, polytechnics and other institutes now churn out about 1,400 aerospace-qualified people a year. In 2003, there were just 200 graduates.

Industry players welcomed plans to boost the sector further.

Mr Nick Sng, the business development manager at JEP Precision Engineering, which does engine-related work, said bringing in more firms would raise competitiveness and lower costs.

Business growth and strong Government support for the sector have already encouraged new players to come in.

Executive director Sam Tan of Soon Lian Holdings, which supplies aluminium alloy products, said: 'Our main business had always been the marine industry and precision engineering. More recently, however, we moved into the aerospace industry because we saw the potential for growth in this area, especially with the Government pushing for it. We have reaped the rewards from this move.'