OPENING ADDRESS BY MR. LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY (TRADE), AT THE OPENING CEREMONY OF SINGAPORE AERO ENGINE SERVICES PTE LTD (SAESL)’S ENGINE TEST CELL AND FACILITY EXPANSION, THURSDAY, 17 FEBRUARY 2016, 9AM, 11 CALSHOT ROAD
Distinguished guests,
Ladies and gentlemen,
Good Morning.
Introduction
1. I am delighted to join you this morning to witness the opening of SAESL’s Engine Test Cell and Facility Expansion.
2. This opening marks another significant milestone in SAESL’s long-standing presence in Singapore. Officially opened in 2002, SAESL started out in Singapore as a 90-man operation, and has grown to around 900 employees with annual revenues exceeding S$1 billion.
3. This investment attests to the successful partnership between Rolls-Royce and SIA Engineering Company. I would like to express my appreciation to Mr. Stephen Lee, Mr. Png Kim Chiang, Mr. Eric Schulz and Mr. Paul Inman for your continued confidence in Singapore.
Aerospace is a growth sector for Singapore
4. Singapore’s aerospace industry has grown significantly over the past two decades[1] at a compounded annual growth rate (CAGR) of 8.6%[2]. Today, Singapore is a comprehensive maintenance, repair and overhaul (MRO) hub with a wide range of nose-to-tail capabilities, accounting for about 10 per cent of global MRO output.
5. Singapore must continue building on our competitive advantage in aerospace. The government will continue to partner companies in developing new capabilities and adopting innovative solutions. These efforts will help us to seize global opportunities and create good jobs for Singaporeans in the future. These are key priorities for the Committee on the Future Economy, which has started to envision new strategies and competitive niches to position Singapore for the future.
Partnering companies to build new capabilities
6. The global aerospace industry is experiencing a major change of aircraft fleets as airlines replace their older aircraft with more fuel-efficient models. For instance, 42 per cent of all new deliveries over the next 20 years will replace existing planes, compared to the historical average of 15 to 20 per cent. At least 8 major new generation aircraft platforms will also be introduced between 2010 and 2020. This is considerably higher than the average of two to three new aircraft platforms introduced per decade prior to 2010.
7. In view of these developments, MRO companies such as SAESL will need to upgrade capabilities to support new-generation engine platforms. The Government will support them in doing so.
8. For example, the engine test cell and facility expansion that we are celebrating today will enable SAESL to build new MRO capabilities for new-generation engine platforms such as the Trent Extra Wide Body (XWB) and Trent 1000 engines that power the latest Airbus A350XWB (A350XWB) and Boeing 787 (B787) aircrafts respectively. Through SAESL’s continued efforts in upgrading its capabilities, the company has maintained its position as Rolls-Royce’s leading Trent engine overhaul shop in the world.
Partnering companies to adopt innovative solutions
9. In addition, Singapore will continue to partner companies to adopt innovation solutions. For example, A*STAR’s Advanced Remanufacturing & Technology Centre (ARTC) is collaborating with over 35 industry partners to develop remanufacturing technologies that increase productivity, lower costs and enhance sustainability. Aerospace is one of the industries to which these innovative solutions can be applied. SAESL has also been collaborating with ARTC to develop and implement an automated masking robotic system for plasma coating of the Trent fan blade. When implemented, this system is estimated to reduce the time required for plasma coating by a factor of three.
10. Moving forward, the Government will also help to foster partnerships between aerospace companies, robotics and automation solution providers on productivity projects to enhance the competitiveness of the Singapore aerospace industry [3].
Singapore is committed to investing in its people to ensure a future ready workforce
11. The aerospace industry has made important contributions in providing good jobs for Singaporeans. In 2014, the industry employed close to 20,000 people with locals making up 80 per cent of the workforce. Many Singaporeans who have joined the aerospace industry speak passionately about it, and aerospace courses at our schools continue to attract some of the brightest young talent.
12. As the industry grows and evolves, the Government is committed to investing in Singaporeans to ensure that they are ready for job opportunities in the future. The recently launched SkillsFuture Earn and Learn Programme (ELP) for aerospace engineering is one example of an initiative to offer fresh ITE and Polytechnic graduates an accelerated career progression to become qualified technicians.
13. I am pleased to note that SAESL has been investing in its people. Take Mr. Sean Boo, for instance. Since joining SAESL 12 years ago as a Technical Service Engineer, Sean has been cross-trained on multiple Trent engine types. He has also been sent for supervisory training courses to build up his project planning and team management skills. Sean is currently a Production Manager leading a team of 34 engineers and technicians. I understand that his team has played a major role in the successful commissioning of this new engine test cell.
Conclusion
14. In closing, let me express my congratulations to SAESL on the opening of its Engine Test Cell and Facility Expansion, which I am confident that it will position SAESL for greater success, and further cement Singapore’s status as a leading hub for aftermarket services in the region.
15. Thank you.
[1] From 1994 to 2014
[2] Rounded down from CAGR of 8.64 per cent
[3] Cycle time for the plasma coating process is expected to be reduced from 30 minutes to 10 minutes per fan blade