The Agencia del Area Economica Especial Panama-Pacifico (AAEEPP) and Singapore Technologies Aerospace Ltd (ST Aerospace), the aerospace arm of ST Engineering, announced that they have signed a Memorandum of Understanding on 22 February 2006 to set up an airframe, heavy maintenance, repair and overhaul (MRO) facility in Panama.

Under the agreement, ST Aerospace will take over all the four existing hangars at the ex-Howard Air Force Base, located just west of the Panama Canal.  Each hangar is able to take up to three narrow-body aircraft.  It expects to commission the facility for operations in early 2007.

The AAEEPP is commissioned by the Panamanian government to attract foreign investors into the Howard area and had invited ST Aerospace to develop an aircraft MRO facility using the existing hangars.

Mr Gilberto Ferrari, Administrator of the AAEEPP, mentioned that the Government of Panama is committed to create at Panama-Pacifico a Centre of Excellence for Aeronautical Services.  "Panama has a plan to bring in world-class companies to invest in Panama-Pacifico.  One of the businesses that we are keenly interested in is aviation MRO and we are pleased that we have been able to interest ST Aerospace, a leading aircraft MRO company and the world’s largest airframe MRO to set up operations in Panama.”

"It is estimated that this venture will create more than 1000 well paid jobs.  Besides, it will transfer the latest technologies in the aerospace industry and will attract other related support industries".

Mr Tay Kok Khiang, President of ST Aerospace, shared that “We have been looking for a suitable location to develop additional maintenance capacity in Central or South America to complement our two airframe repair stations in the USA.  We have decided on Panama as it has a good infrastructure to meet our need, is strategically located between the USA and South America, and the Government has been pro-active and supportive of our investment.”

Mr Tay added: “Initially, the facility will focus on narrow-body aircraft.  We believe Panama will enhance our global MRO network in bringing value to our customers, and we look forward to a successful start-up operation after we conclude the definitive agreement.  We hope to bring many value-added jobs to the people of Panama.”

AAEEPP is responsible for the administration, promotion, development, regulation and provision of adequate use of the areas assigned to the Panama Pacific Area.  Please visit www.aaeepp.gob.pa .

ST Aerospace is the aerospace arm of ST Engineering.  Operating a global MRO network with facilities in Asia Pacific, Europe and the U.S., it is the world’s largest airframe MRO with a global customer base that includes many of the world’s leading airlines, airfreight operators and military operators.  

ST Aerospace provides a full spectrum of maintenance and engineering services through its three business segments: Aircraft Maintenance & Modification (AMM), Component / Engine Repair & Overhaul (CERO), and Engineering & Materials Services (EMS).  Its services 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 5,000 engineers and technical specialists.  Please visit www.staero.aero .