[Public Notice+] Kenkoa Aerospace Secures 260 Billion KRW Order from World's Largest MRO Company

[Asia Economy Reporter Jang Hyowon] Kenko Aerospace has signed a supply contract worth 260 billion KRW with the world's largest MRO company.

Kenko Aerospace announced on the 17th that it has signed a supply contract worth 262.9 billion KRW (216 million USD) with ST Engineering, one of the top 5 global MRO market aviation companies, for parts related to passenger-to-freighter aircraft conversion projects.

The contract size is a massive scale, approaching 568% compared to Kenko Aerospace's consolidated sales of 46.2 billion KRW last year, and the project duration is a total of 17 years until 2037. Accordingly, an additional annual sales realization of 15.5 billion KRW, equivalent to 33% of last year's consolidated sales, is expected.

ST Engineering, headquartered in Singapore, is a global company included in the MSCI and STI indices, with annual sales of 94.4 trillion KRW as of last year.

ST Engineering has completed over 400 conversions in the passenger-to-freighter aircraft conversion sector. According to Cargo Facts, the demand for conversions of A320s/A321s models is expected to be about 430 units, and for A330s models about 423 units, by 2037.

This order was won by competing against ST Engineering's existing European regional supply chain. It is explained that the large-scale order was made reflecting Kenko Aerospace's market references such as quality, delivery excellence, and cost competitiveness.

A Kenko Aerospace official said, "This large-scale order contributed to the growth policy of the company, which is focusing on fostering defense, MRO, and space industries," and added, "The government is actively supporting the aviation MRO sector, and since this MRO is related to aircraft conversion rather than operation-related MRO, the related business is expected to accelerate further."